VMS Group manages $4 billion and begins investing in cryptocurrencies

VMS Group in Hong Kong, which manages assets worth $4 billion, is starting to invest in cryptocurrencies with an initial allocation of up to $10 million.

Reports indicate that a multi-family office based in Hong Kong, which manages funds for some of the city's wealthiest families, is preparing to enter the world of cryptocurrencies for the first time.

The company, which manages assets worth $4 billion, aims to invest up to $10 million in Re7 Capital strategies, according to a report published by Bloomberg on Monday. However, the exact size of the allocation has not yet been finalized.

Elton Cheung, managing partner at VMS Group, told Bloomberg: "This decision comes as part of our recent moves to diversify our investments into more liquid assets."

Cheung added that the company has made significant gains in private equity investments and other long-term investments, but is finding it difficult to exit those investments as more companies remain private for longer periods.

Encouraging regulations support expansion

Cheung attributed the decision to enter cryptocurrencies to increased demand and the emergence of a supportive regulatory environment. He said, "We saw that the time has become right due to growing demand, clarity of legislative and governmental support from several jurisdictions, along with backing and adoption from major institutions."