Hashkey Capital's Crypto Market Fund to Invest in Cryptocurrencies in a Bid to Outperform Bitcoin

Hashkey Capital's first secondary crypto market fund will invest a significant portion of its assets in second-tier cryptocurrencies, with the goal of outperforming market leader Bitcoin, according to its portfolio manager. The fund will be launched on Friday by the investment arm of Hong Kong crypto giant Hashkey Group. According to Jupiter Zheng, it has already secured potential clients, primarily high-net-worth individuals and investment firms serving wealthy Asian families.

Less than half of its investments will be in Bitcoin and Ethereum, the two most popular crypto currencies. According to Zheng, the asset manager will use its crypto venture investment experience to diversify allocations to smaller rivals known collectively as "altcoins." A portion of the fund's holdings will be in cash as well. Hashkey Capital, which manages over $1 billion in assets, previously stated that it hoped to raise $100 million for the fund over a 12-month period.

The Hong Kong government has made an effort to embrace cryptocurrency and meet market demand for alternative assets, with the Asian financial hub promoting the development of web3, a version of the internet that operates the blockchain technology used by cryptocurrency assets. This year, the city has hosted over 100 crypto-related conferences.

Zheng added that Hashkey Capital is also developing distribution channels with some offshore Chinese financial institutions, and that the Hong Kong stock market's weakness has prompted investors to seek out diversified strategies.