According to an official announcement by Huobi Technology Holdings Ltd., the company’s asset management subsidiary has secured approval from the Hong Kong Securities and Futures Commission to launch a cryptocurrency asset management portfolio.
The news is a follow-up to Huobi securing “Type 4” and “Type 9” licenses from the SFC back in July 2020. In Hong Kong, a Type 4 license enables a company to act as a securities investment adviser while a Type 9 license covers asset management.
According to reports in Chinese media, Dubbed Huobi Asset Management, the company is currently looking to launch three cryptocurrency asset funds following the approval by the SFC. Nonetheless, the launch will be contingent on the fund complying with additional provisions issued by the SFC.
Tweeting on Thursday, Beijing-based reporter Colin Wu noted that Huobi’s entry into the crypto asset management arena may incentivize institutional investors in Asia to consider crypto investments.
Wu also added that Huobi’s planned crypto asset management fund will include both Bitcoin (BTC) and Ether (ETH).
Huobi is second only to Binance in terms of real spot trading volume, according to data from crypto research firm Messari.
Following China’s ban on crypto trading and initial coin offerings in 2017, some Chinese exchanges moved their offices elsewhere with Hong Kong and Japan being favored destinations at that time.