Asian Crypto Firms Capture Institutional Demand
One of the latest Asian companies to tumble down the bitcoin rabbit hole is Henyep, a Hong Kong-headquartered financial giant with $35 billion in annual turnover. Last month, the company confirmed the creation of a subsidiary, Q9 Capital, tasked with meeting rising institutional demand for crypto from high-net-worth individuals and family offices. Q9 Capital will run a comprehensive over-the-counter (OTC) trading desk to facilitate clients’ trades and provide digital savings products and custodial services.
Stack, a provider of cryptocurrency trackers and index funds, also expects to surpass $2 billion in assets under management (AUM) this year having launched Asia’s first institutional-grade Bitcoin Index Fund last January. Co-Founder Matthew Dibb cited “fears of a global recession combined with deteriorating trade relations globally” after launch, but that was pre-pandemic, with bitcoin valued at less than $10,000. Since then, BTC has 5x while central banks have printed trillions to counter the economic impact of Covid-19. If $2 billion of AUM was the target in January 2020, it has surely increased since then.
While Asia has long possessed the infrastructure to service those already familiar with cryptocurrency, it is rapidly developing the sort needed to onboard clients who are completely new to the industry, and who are keen to either storing wealth in bitcoin, fund innovative blockchain projects, or speculate on price (derivatives trading). Needless to say, there are many moguls and magnates throughout Asia keen to flex their financial muscles on the crypto market. Between Beijing and Shanghai, there are close to 200 billionaires, with Hong Kong and Shenzhen rounding out the top 5 wealthiest cities: New York is the only non-Asian metropolis to make the cut.
“While this current bull run is mainly led by the institutional players in the West – the likes of Paul Tudor Jones, Stanley Druckenmiller, MassMutual, Grayscale, Square, MicroStrategy, and PayPal – Asia still holds the vast majority of Bitcoin mining capacities, has the largest number of Bitcoin whales, and possesses the most progressive regulatory environment,” observes Ben Zhou, CEO of Singapore-based derivatives exchange Bybit.
“This side of the Pacific hosts the best lab conditions for innovation and democratization through the implementation of scalable solutions. At Bybit, we are committed to creating a fair, transparent and efficient trading environment, and crafting a mass adoption-ready, future-proof platform for the exchange of value.”
Read full post here