Hong Kong-based venture capital group CMCC Global has launched its Liberty Bitcoin Fund to provide crypto currency access to accredited investors in Asia who are very interested but have been slow to buy the coins directly. The Liberty Bitcoin Fund is a single-asset passive tracker of Bitcoin and offers services including buying and safekeeping coins.
This is the fourth fund set up by the CMCC Global. Since 2016, CMCC Global had set up three funds. All of the funds are focused on investments in proprietary technical infrastructure such as ethereum network where developers can build applications.
According to Martin Baumann, managing partner of CMCC Global, the new fund is a demand-driven one as they have been getting more and more questions over the years from the existing investor base about whether they could help them buy Bitcoin. The funds raised more funding from high net worth individuals, family offices assets and institutional investors over time. The first fund in the CMCC Liquid VC series gathered $1 million while the other two successors received $3.5 million and $30 million.
CMCC is launching its Liberty Bitcoin Fund with the ambition to provide digital asset management services in Asia to be on par with Grayscale in the U.S. Investors needed a regulated outfit in which they could invest, something like Grayscale in New York. What we’re doing here is a similar story, Baumann said.
The latest fund uses ANXONE Custody, a proprietary digital asset safekeeping system with insured wallets provided by custodian BC Group, a digital asset technology company publicly listed on Hong Kong Stock Exchange.
The launch of this Fund is significant as there has been a rising demand for cryptocurrencies as an asset class for traditional funds. As digital assets mature and gain recognition, such as being included in mutual funds and ETFs, this volatility should slowly subside, making it a more appropriate investment in multi-asset portfolios. As digital assets grow to be perceived as a legitimate investment in portfolios, mutual funds have become one of the most accessible ways to own crypto.
Investors who prefer not to open accounts specifically for digital assets would be able to purchase mutual funds within their standard brokerage accounts and maintain all of their assets in one place. While cryptocurrencies might not be as stable as traditional asset classes including fixed income and equity, their price movements tend to be non-correlated with other asset classes, increasing the diversification benefit of adding crypto to already diversified portfolios.