VMS Group, a multi-family office managing nearly $4 billion in assets, is preparing to invest in cryptocurrencies, capitalizing on Hong Kong’s pro-crypto regulatory framework.
VMS Group is set to allocate up to $10 million into digital assets through strategies managed by Re7 Capital, a London-based decentralized finance (DeFi) hedge fund.
“We believe that now is the right time, as market demand continues to rise and clear legislation is emerging across key jurisdictions,” said Eton Cheung, Managing Partner at VMS.
Cheung noted that the investment amount is still under discussion, but the firm sees increasing confidence in the sector due to institutional recognition and regulatory support.
Why Is VMS Investing in Crypto Now?
The move reflects VMS’s broader strategy to diversify into more liquid assets. Historically focused on private equity and long-term investments, the firm has seen exit challenges with illiquid assets—pushing it to explore crypto markets for better liquidity and returns.
Hong Kong’s Evolving Crypto Regulations: A Magnet for Global Investment
Hong Kong is rapidly becoming a crypto investment hub, thanks to its forward-thinking policies. Key developments include:
- New crypto regulations to encourage innovation while protecting investors
- Plans to issue a Central Bank Digital Currency (CBDC)
- Permission for companies to launch stablecoins backed by fiat by year-end
- Retail access to regulated crypto products, lifting earlier restrictions
- Implementation of strong risk management protocols
These measures have attracted numerous international firms and restored investor confidence in Hong Kong’s digital asset space.
Final Thoughts
Hong Kong’s progressive crypto stance is turning heads. As the city builds a secure and supportive ecosystem, high-profile wealth managers like VMS Group are leading the way.Their potential $10 million investment into DeFi signals a new era of crypto adoption among Asia’s elite financial institutions.
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FAQs
VMS Group plans to allocate up to $10 million to strategies managed by Re7 Capital, a London-based decentralized finance (DeFi) hedge fund. The exact amount hasn’t been finalized yet.
Re7 Capital is a London-based hedge fund specializing in decentralized finance (DeFi) strategies. VMS chose it for its market-neutral, yield-generating approach, which fits institutional risk profiles.
By choosing a hedged DeFi strategy, VMS aims for yield with reduced exposure to crypto’s price swings, aligning with their conservative risk management.
