Nov 14, 2018 (China Knowledge) - Shanghai-based digital asset management firm, Point95 Global, is planning to launch a new multi-strategy crypto-quantitative fund with an unnamed licensed asset manager in Hong Kong.
The private fund which is targeted at professional investors, will be based on a quantitative hedge fund strategy that utilizes complex computer modelling and algorithms to seek arbitrage trading opportunities across different cryptocurrency asset classes.
Arbitrage trading strategies seek to profit from the simultaneous buying and selling of related instruments. This is done through taking long or short positions on these instruments across different markets. Point95 Global is already trading the top 10 cryptocurrencies by market capitalization with these strategies, starting with its own seed money of USD 3 million.
Point95 Global will act as a sub adviser for the quantitative hedge fund while the Hong Kong-based asset manager will act as the fund distributor and will be doing the fund management. The initial size of the fund is expected to be USD 30 million.
Point95 Global wants to be the first in the cryptocurrency funds market to follow Hong Kong's securities regulations and operate with the right licenses. The company believes that by showing how assets are safeguarded and managed, they will be able to bring about more confidence in the crypto asset market among institutional investors.
The fund will be launched before the first quarter of 2019 and will follow the new set of regulatory standards governing the management of virtual asset portfolios set by the Hong Kong Securities and Futures Commission (HKSFC). These regulations pertain to licensing conditions for portfolio managers that are investing 10% or more of the portfolio’s gross asset value into virtual assets.
Point95 Global's cryptocurrency fund launch comes as more and more blockchain and cryptocurrency asset managers and advisors are starting to set up shops in Hong Kong.
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