Diginex Asset Management (Hong Kong) Limited (Diginex AM) has been granted a Type 4 (Advising on Securities) and Type 9 (Asset Management) license from the Securities & Futures Commission in Hong Kong. Part of the Diginex Group, Diginex AM intends to provide an institutional on-ramp to the digital asset class through fund of digital asset hedge fund strategies.
The market capitalisation of digital assets is projected to grow from US$250 billion1 to US$6.7 trillion in 20252, with institutional investors expected to constitute a significant portion of that growth. Similar to the evolution seen with traditional hedge funds, a multi-manager approach can represent a compelling way for professional investors to gain exposure to this exciting new asset class.
“We are delighted that Diginex AM is among the first companies focused on digital asset strategies to receive these licences. 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,” says Mr. Richard Byworth, CEO of Diginex Group.
Alongside the license application, the Dignex AM team has vetted more than 200 digital asset hedge funds globally with the aim of building a diversified, all-weather vehicle focused on risk- adjusted returns in a liquid and transparent fashion.
“We envision a future where digital assets will come to represent a standard part of alternative investment allocation programs. We believe this new asset class is highly inefficient with significant alpha on offer. Today’s news is a watershed event for Diginex and the broader digital asset community,” added Mr. Byworth.