- HashKey Capital plans to allocate more than $50 million to Altcoins, with less than half of the capital earmarked for investment in Bitcoin and Ethereum.
- The shift in strategy indicates that HashKey Capital is pursuing above-average returns and has chosen a high-risk, high-reward approach.
HashKey Capital, Veering Away from Bitcoin and Ethereum
HashKey Group is a prominent virtual asset exchange renowned for its significant investments in Bitcoin and Ethereum. It is now taking a bold step by introducing its second fund, valued at $50 million, focusing on altcoins.
This marked departure from their traditional strategy of favoring large-cap coins signifies a noteworthy shift in their investment approach.
HashKey Capital is poised to launch its $50 million fund on September 1, 2023, further building upon its proven track record of supporting Web3 projects.
Moreover, they have ambitious plans to raise a total of $100 million in the next quarter.
In addition to these developments, HashKey Group has already achieved considerable success, having raised approximately $500 million for its HashKey FinTech Fund III.
This fund actively invests in projects related to decentralized infrastructure and gaming ecosystems on the BNB Chain.
Furthermore, HashKey Capital and SEBA bank have secured regulatory approval in Hong Kong, which enables an expansion of its cryptocurrency trading services.
This strategic move significantly bolsters its position in the ever-evolving cryptocurrency landscape.
With an impressive asset base of $1 billion and a diverse portfolio comprising 300 projects, HashKey plays a vital role in fostering connections between entrepreneurs and clients.
Their primary focus areas encompass DeFi, Web3, decentralized data storage, and the tokenization of tangible real-world assets.
HashKey’s Hunt for Alpha Gains
HashKey primarily targets high-net-worth individuals and organizations that serve affluent Asian families as investors.
This specific investor group consistently pursues returns that exceed the norm. Such a goal may not always be attainable through investments in Bitcoin and Ethereum alone.
We see untapped demand from professional investors who wish to chase above-market alpha (returns) in crypto.Jupiter Zheng, Research Director @HashKey Capital
These two cryptocurrencies (BTC and ETH) are the most widely known and relatively stable virtual assets. They offer consistent but relatively smaller returns.
Hong Kong’s Increasing Role in Crypto Market
HashKey Capital, a subsidiary of HashKey Group headquartered in Hong Kong, also oversees the organization’s operations in Tokyo and Singapore.
This strategic pivot aligns with Hong Kong’s burgeoning status as a hub for the cryptocurrency market. The country has hosted over 100 crypto-related conferences in 2023 alone.
Significantly, the government has enacted legislation to issue licenses to cryptocurrency trading firms. HashKey is one of just two companies holding a full license for crypto trading activities in Hong Kong. This underscores their pivotal role in the region’s crypto ecosystem.
Investors Must Be Wary of Market Crash After a Bull Run
HashKey’s investment thesis revolves around optimizing returns for its investors during a bullish market cycle. Alpha gains for HashKey investors depend on timely exits during the potential Altcoin surge in the next bull run.
However, there’s a temptation to hold coins with rising prices during a bull run, which may lead to unintended risks. Without careful management, a sudden market crash could rapidly erode profits.
Do you think HashKey Capital’s gamble on Altcoins will pay off? Or will it leave them with a loss beyond their expectations?