Point95 Global may soon launch a new cryptocurrency trading fund. Located in Shanghai, the digital asset management firm is working with an unnamed licensed asset manager in Hong Kong. The information was released a few days ago by China Knowledge.
Poin95 Set to Launch Crypto Trading Fund
With this new private fund, Point95 will be targetting professional and other wealthy investors. They will be using ‘arbitrage trading strategies’ in order to capitalize on buying and selling of related instruments taking long and short positions in different markets.
The company is already trading the 10 largest virtual currencies in the market including Bitcoin (BTC), Litecoin (LTC) and Ethereum (ETH). Point95 is also trading these currencies with its own seed money of $3 million dollars.
The unnamed asset manager located in Hong Kong will be the fund distributor and in charge of the management. Apparently, the fund will start with $30 million dollars under management.
Regulations related to the cryptocurrency market are also becoming tighter in Hong Kong. The Securities and Futures Commission (SFC) in the country, started requiring licenses for crypto funds to operate. Point95 Global’s fund will be acquiring the new license required to operate in Hong Kong.
Different countries are starting to impose regulations on the cryptocurrency market. Companies will have to be compliant with the legal framework if they want to operate and grow in the market.
This fund will be launched before the first quarter of 2019, according to China Knowledge. The aforementioned regulations apply to portfolio managers that are investing 10% or more of the portfolio’s gross asset value into digital assets.
During the current year, new hedge funds have been launched. It seems that they did not pay attention to the falling cryptocurrency market. As Circuit Capital informs, the market has shifted towards adoption rather than speculation.
Eugene NG, Circuit Partner, commented about it:
“Despite what is happening with prices, we’re seeing adoption growing and a lot of people are looking to scale crypto businesses […] We are starting to see talent moving into this space and institutional infrastructure developing.”
In 2019, most of the experts remain bullish about the future of the cryptocurrency world.
Carlos is an international relations’ analyst specializing in cryptocurrencies and blockchain technology. Since 2017, Carlos has written extensively for UseTheBitcoin and other leading cryptocurrency sites; with over 2,000 articles published.
