HONG KONG, Sept. 17, — CMCC Global, one of Asia’s first venture capital companies focused solely on blockchain technology, announced today the launch of the Liberty Bitcoin Fund, an institutional grade, single-asset passive tracker of Bitcoin (BTC) for accredited investors who are very interested but have been slow to buy the coins directly.
“We have received more and more questions over the years from our existing investor base about whether we could help them buy Bitcoin,” Martin Baumann, managing partner of CMCC Global said. “The new fund is really a demand-driven.”
CMCC Global has set up three funds since 2016. All of the funds are focused on investments in proprietary technical infrastructure such as Ethereum network where developers can build applications.
The fund is the first of its type in Asia and provides investors with institutional-level access to Bitcoin without the burden of buying and safekeeping coins. All Bitcoin held by the fund are covered by insurance and are kept safe by a Hong Kong Stock Exchange-listed custodian.
The first fund in the CMCC Liquid VC series gathered $1 million while the other two successors received $3.5 million and $30 million.
“Bitcoin is proving itself to be an asset that appeals to institutional investors. At CMCC Global, we have seen growing demand from our clients to gain direct exposure to Bitcoin in a safe and secure manner,” said Martin Baumann, co-founder of CMCC Global. “We have successfully worked with BC Group and value the firm as one of the most professional technology and digital asset companies in Asia. Their newly launched custodial solution, ANXONE Custody, eventually convinced us that now is the time to bring this fund to life. We are excited to launch the Liberty Bitcoin Fund as a way to provide institutional-grade access to this nascent asset class.”
Demand for Digital Asset Class Gain Traction
There is rising demand for cryptocurrencies as an asset class for traditional funds, industry pros said.
“The Liberty Bitcoin Fund is the most efficient way for professional investors around the world to access Bitcoin,” said Liberty Bitcoin Fund Manager Thilo Roth. “The fund is structured in a way similar to a traditional commodity tracker fund, such as those available for tracking the price of gold, and allows professional investors to gain exposure to the underlying assets using a secure and regulated structure they are familiar with.”
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.
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.
Limited in Asia
Crypto investment in Asia is less common than you’d think.
“If you are a billionaire in Hong Kong or anywhere in the world, you don’t get a ledger and tell your analyst to buy some Bitcoin for you, and then he runs away with it. That’s just doesn’t work,” Baumann said.
The Liberty Bitcoin Fund comes with the ambition to provide digital asset management services in Asia to be on par with Grayscale in the U.S., Baumann said.
“Investors needed a regulated outfit in which they could invest, something like Grayscale in New York,” Baumann said. “You need auditors, you need a licensed fund administrator, you need to have professional care.” he said. “We need an anti-money laundering people, and amongst others you need to have a professional custodian.”