Diginex launched one of Hong Kong’s first regulated asset managers focused solely on digital asset strategies. According to a report dated June 6, Diginex Asset Management (Hong Kong) Limited (Diginex AM) applied for Type 4 and Type 9 licenses from the Securities & Futures Commission (SFC) in Hong Kong. Type 4 license addresses advise on securities whereas the Type 9 license addresses asset management.
Diginex AM, part of the Diginex Group, intends to provide access to the digital asset class by using digital asset hedge fund strategies. The market capitalization of digital assets is projected to hit $6.7 trillion by the year 2025 from the $250 billion current figure. Institutional investors are expected to significantly contribute towards this growth.
Implementation of a multi-manager approach has revolutionized traditional hedge funds and it is bound to better digital asset strategies. The platform offers professional investors exposure to the existing new asset class. Mr. Richard Byworth, CEO Diginex Group stated:
“We are delighted that Diginex AM is among the first companies focused on digital asset strategies to receive these licenses. Diginex strives to set a new standard for the blockchain industry so we can enable institutional adoption of this new technology as well as the digital asset class. This milestone is a prime example of that ethos, working with authorities across the world to build trust through regulation in this rapidly evolving industry.”
In addition to the license application, Diginex AM team has vetted more than 200 digital asset hedge funds across the globe. The objective is to build a diversified, all-weather infrastructure that focuses on risk-adjusted returns while upholding on transparency. The company is showing significant global growth with acquisitions and partnerships to meet its key objective of making digital assets more accessible with efficient business processes and a secure platform.
Byworth indicated that the company envisions a future where digital assets will come to represent a standard part of alternative investment allocation programs. He strongly believes that the new asset class is inefficient with significant alpha on offer. In his own words, “Today’s news is a watershed event for Diginex and the broader digital asset community.”
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