Dublin-based investment firm, Metalpha, has announced its plans to raise a $100 million fund to invest in Bitcoin and other crypto products from Grayscale Investments, a US-based crypto asset manager. According to Bloomberg, the new fund aims to provide Chinese investors with a regulated channel to invest in cryptocurrencies and Web3, a decentralized web that uses blockchain technology. This move comes amid the growing demand for crypto investments in China, despite the country’s strict regulations on cryptocurrencies.
Metalpha’s decision to invest in cryptocurrencies is a testament to the growing popularity of digital assets among institutional investors. With Bitcoin’s recent surge to an all-time high of $64,000, more and more traditional financial institutions are looking to get a piece of the crypto pie. Grayscale Investments, which manages over $46 billion in assets, has become a popular choice for investors looking to gain exposure to cryptocurrencies without having to purchase them directly.
The new fund will provide Chinese investors with a regulated way to invest in cryptocurrencies, which have been banned in the country since 2017. While the Chinese government has been cracking down on crypto trading and mining, the demand for digital assets has continued to grow. According to a recent survey by Chainalysis, China is the world’s largest crypto market, accounting for 35% of all global cryptocurrency transactions in 2020.
Metalpha’s decision to invest in Grayscale’s crypto products is a strategic move, as the firm has a strong track record of managing digital assets. Grayscale’s Bitcoin Trust is one of the most popular ways for investors to gain exposure to Bitcoin, with over $36 billion in assets under management. The firm also offers trusts for other cryptocurrencies, including Ethereum, Litecoin, and Bitcoin Cash.
While the new fund will provide Chinese investors with a regulated way to invest in cryptocurrencies, it remains to be seen how the Chinese government will react to the move. The country’s strict regulations on cryptocurrencies have made it difficult for investors to gain exposure to digital assets, and the government has been cracking down on crypto-related activities in recent years. However, with the growing demand for digital assets in China, it is possible that the government may reconsider its stance on cryptocurrencies in the future.
In conclusion, Metalpha’s decision to invest in Grayscale’s crypto products is a strategic move that will provide Chinese investors with a regulated way to invest in cryptocurrencies. With the growing demand for digital assets in China, the new fund is likely to attract a significant amount of investment. However, the Chinese government’s stance on cryptocurrencies remains a major hurdle for investors, and it remains to be seen how the government will react to the new fund. As the crypto market continues to evolve, it will be interesting to see how governments around the world adapt to the growing popularity of digital assets.
