Hong Kong-based cryptocurrency wealth manager, Metalpha Technology, has secured $20 million out of its planned $100 million fund from overseas Chinese investors. The new fund, known as the Next Generation Fund I, aims to offer new entry points into Bitcoin (BTC) and Web3 to investors in Asia by investing in Bitcoin and other crypto products by the major American crypto asset manager, Grayscale Investments. The fund will invest directly in Grayscale’s crypto investment products and indirectly through structured derivatives related to Grayscale’s products, allowing institutions and high-net-worth individuals to get indirect exposure to crypto.
Metalpha’s upcoming investment project is launched in partnership with NextGen Digital Venture Limited. The fund aims to help Chinese investors get a regulated channel to invest in cryptocurrencies and Web3, Bloomberg reported on April 12. Metalpha founder and CEO Adrian Wang said that the company has already secured $20 million for its new fund since March. He added that the fund has so far attracted many Chinese investors, stating: “A lot of our clients are family offices with traditional backgrounds, rather than pure crypto or pure Web3 native investors […] It’s overseas Chinese institutions — some of them are family offices, some of them are public companies.”
Metalpha was originally known as Dragon Victory International, offering supply chain management platform services and cryptocurrency derivative product services in Hong Kong. The firm rebranded to Metalpha in late 2022, soon after receiving a Nasdaq notification regarding minimum bid price deficiency. Metalpha regained compliance with Nasdaq’s listing rules as of April 2023.
Metalpha is backed by Singapore-based venture capital firm Antalpha, which has been reportedly working with the Chinese crypto mining firm Bitmain to offer low-interest loans to crypto miners. Wang also noted that Metalpha had seen increased demand for its products recently, which followed a series of difficulties connected to the bear market of 2022 as well as the collapse of the FTX crypto exchange. “A lot of clients hesitated to place new orders, but now it’s getting much better,” Wang stated, adding that a lot of new traffic is coming in and people are gaining more confidence now.
The new fund will offer Chinese investors an opportunity to invest in cryptocurrencies and Web3 through a regulated channel, which is a significant breakthrough for the crypto industry in Asia. The fund will invest directly in Grayscale’s crypto investment products and indirectly through structured derivatives related to Grayscale’s products, allowing institutions and high-net-worth individuals to get indirect exposure to crypto. Metalpha has already secured $20 million for its new fund since March, with many Chinese investors showing interest in the project. The fund is launched in partnership with NextGen Digital Venture Limited and aims to help Chinese investors get a regulated channel to invest in cryptocurrencies and Web3.
Metalpha was originally known as Dragon Victory International, offering supply chain management platform services and cryptocurrency derivative product services in Hong Kong. The firm rebranded to Metalpha in late 2022, soon after receiving a Nasdaq notification regarding minimum bid price deficiency. Metalpha regained compliance with Nasdaq’s listing rules as of April 2023. The firm is backed by Singapore-based venture capital firm Antalpha, which has been reportedly working with the Chinese crypto mining firm Bitmain to offer low-interest loans to crypto miners.
Metalpha’s CEO, Adrian Wang, noted that the company had seen increased demand for its products recently, which followed a series of difficulties connected to the bear market of 2022 as well as the collapse of the FTX crypto exchange. However, Wang added that a lot of new traffic is coming in, and people are gaining more confidence now. The $100 million fund will be a significant breakthrough for the crypto industry in Asia, offering Chinese investors an opportunity to invest in cryptocurrencies and Web3 through a regulated channel.
