According to a report by Bloomberg, VMS Group, a money manager to some of Hong Kong’s richest, is now ready to debut in crypto investment, following the transparent and favorable set of rules for digital assets in the region, attracting new investors.
It is worth noting that VMS Group has $4 billion in assets under management, and now plans to invest $10 million in Re7 Capital strategies. While talking to Bloomberg, Elton Cheung said the firm is yet to decide the total final amount for the allocation.
Cheung said that the move is followed by the decision of VMS Group to diversify more into liquid investments. He told Bloomberg, “ We thought this was the right time because of growing demand and because we see clearer legislative and government support from various jurisdictions, as well as large institutional support and endorsement.”
“The firm has largely focused on private equity and other longer-duration strategies since it was founded two decades ago. While those investments have performed well, such types of assets have become less liquid as more companies opt to stay private for longer, making it more difficult to exit,” he said.
According to the data from Crunchbase, VMS Assets Management has invested in several companies, including Hope Medicine, Awfar, CiDi, Laiye, Slope Finance, SyMap Medical, Uniskin, HAI ROBOTICS, and Inmagene Biopharmaceutical.
Asset manager boosting stakes in blockchain and crypto
Over the past few years, asset managers have been increasingly shifting investment into blockchain and cryptocurrency-based products, driven by growing institutional demand.
Asset managers like BlackRock, GrayScale, Pentera Capital, and Bitwise Asset Management have already debuted the decentralized category and are now positioned as one of the most prominent players in the market.
Especially after the approval of Bitcoin spot ETF, the cryptocurrencies have gained mainstream traction with a surge number of users, adopters, and holders.
On the other hand, asset managers, some publicly listed companies have also shown their interest in Bitcoin, MicroStrategy, Metaplanet, Tesla, Hut8, Nexon, and K33 are some major players, including several others.
Not only institutions and publicly listed companies but also some nations have opted to form their crypto reserve, which will primarily include Bitcoin.
A special push towards Bitcoin has been noted after the historical victory of Donald Trump in the presidential elections of the United States held in 2024.
During his election campaigns, he promised to favour Bitcoin and make the U.S a digital economy. Trump has signed several orders that have opened new paths for cryptocurrencies.
The shift towards digital assets is supported by regulatory advancement, client demand, and market growth, though volatility and security concerns necessitate cautious strategies.
A quick update on the crypto market
As of writing, the cryptocurrency market capitalization was $3.26 trillion, with an intraday increase of 3.67% and the trading volume is above $150 million.
At the same time, the crypto fear and greed index was 47, indicating neutrality; Bitcoin is now at $105,292 with a surge of 3.75%, its market capitalization is $2.09 trillion with an increase of 3.86%.
Ethereum added more than 6.50% to its price, reaching $2,400. The market capitalization is $290 billion, which is up by 7.37%, and the trading volume was $28.31 billion.
According to the data from CoinMarketCap, the intraday gainers list has been topped by Sei, followed by Jasmy Coin, Dogwifhat, Virtuals Protocol, Jupiter, Sonic, Arbitrum, and Bittensor.
