Hong Kong's HashKey Capital Launches Digital Asset Fund Allowing In-Kind Subscriptions

 The approval allows investors to contribute a range of digital assets directly into the actively managed fund, marking a shift from conventional fiat-based subscription models.

HashKey Capital, a leading asset manager in Hong Kong, has received approval from the Securities and Futures Commission (SFC) to allow investors to directly contribute 100 of the largest cryptocurrencies by market capitalisation to its actively managed fund, a company spokesperson confirmed on Thursday.

This approval marks a significant development in Hong Kong’s Web3 space, granting broader participation in a crypto fund and aligning with how digital assets are typically used and stored.

The firm’s offering at present supports contributions in any of the top 100 cryptocurrencies by market capitalisation, including assets such as Bitcoin, Ether, Ripple, Solana, Dogecoin, Cardano, Sui, Chainlink, Toncoin, and Polkadot.

According to HashKey Capital, this new mechanism will streamline access to the fund for crypto holders.

“We are excited to announce that we have received approval from the SFC to allow in-kind subscriptions to our actively managed fund with an expanded range of 100 cryptocurrencies,” said a representative from HashKey Capital.

“This follows our recent approvals for Ethereum staking services and discretionary account management, showcasing our commitment to expanding our services and providing greater value to investors.”

The Hong Kong-based firm manages a suite of digital asset products, including an actively managed fund and the Bosera HashKey Bitcoin and Ether spot ETFs, which are listed on the Hong Kong Stock Exchange (HKEX).

Earlier this year, HashKey Capital also unveiled a new actively managed fund focused on artificial intelligence (AI) and Web3 trends.

Its hybrid investment approach combines the expertise of experienced asset managers with advanced AI technologies to generate investment ideas and manage a concentrated portfolio of Hong Kong equities.

Earlier this year, the SFC updated its regulatory guidelines to permit greater participation in crypto funds by allowing investors to directly contribute supported tokens in-kind to the funds.

However, only a limited number of asset managers in Hong Kong are currently authorized by the SFC to provide this level of crypto fund access.