Cryptocurrency exchange Huobi Global is laying the groundwork for its first fund-of-funds, according to two people familiar with the matter.
The fund-of-funds vehicle would invest predominantly in outside portfolio managers running liquid hedge fund strategies, the sources said. But it appears possible it could invest in venture capital-style plays, as well.
A spokesperson for Huobi declined to comment. It’s not clear whether the strategy would fall under the purview of Huobi Global or its venture capital affiliate, Huobi Ventures.
It’s not clear when the fund-of-funds would launch, but one of the sources said the exchange has been putting feelers in the market going as far back as two years ago. One possibility is that the fund of funds would launch as soon as Jan. 1.
The effort, in any case, seems to be gathering serious momentum. Both sources pegged the vehicle’s estimated fundraise at about $100 million — which would make it one of the larger crypto hedge fund of funds in the space.
Existing players, including Galaxy Fund Management, have been backing venture capital crypto managers with larger slugs of capital at the fund level. In Galaxy’s case, this came largely through the firm’s June acquisition of Vision Hill.
But funds that back crypto hedge fund managers are harder to come by. Part of the reason: there are still relatively few actively managed hedge fund strategies in the space.
Sources were granted anonymity to discuss sensitive business dealings.
Huobi’s investor relations team has been making overtures to institutional investors in recent months in a bid to drum up funding for the venture.
The exchange is the world’s sixth-largest by volume. It recently pulled out of China, following other exchanges after a regulatory crackdown.
Cryptocurrency exchange Huobi Global is laying the groundwork for its first fund-of-funds, according to two people familiar with the matter.
The fund-of-funds vehicle would invest predominantly in outside portfolio managers running liquid hedge fund strategies, the sources said. But it appears possible it could invest in venture capital-style plays, as well.
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