BC Group, the owner of the institutional cryptocurrency brokerage company OSL, has partnered with Venture Smart Asia Limited (VSAL), a digital private equity fund manager. Both BC Group and VSAL are licensed by the Hong Kong Securities and Futures Commission (SFC).
Announced on Wednesday, the two parties have signed a memorandum of understanding: OSL will offer brokerage services, including trading and capital introduction services, for Arrano Capital, VSAL’s blockchain and crypto investment.
The collaboration, the first between an SFC-regulated trading company and an SFC-regulated broker, is further proof that institutional crypto-charging takes place in innovation-friendly trading centers such as Hong Kong, Singapore and Switzerland.
VSAL launched a bitcoin tracker fund last summer, which currently has about $ 30 million in assets under management, according to Arrano Chief Investment Officer Avaneesh Acquilla. An active managed fund offering exposure to the top 50 cryptocurrencies will be launched immediately, with the first closing of funds targeting about $ 25 million, Acquilla said.
“There is clearly a lot of interest in the Asia region, if you look at how Asia is represented by some of the stock markets, and obviously mining in China,” Acquilla told CoinDesk in an interview, adding:
“I think it is noticeable that the institutions [in Asia] has gone a little slower than in North America to start allocating to space. And I think there’s a pretty good growth story here. ”
OSL’s Matt Long told CoinDesk that one difference between institutional investors in Asia and their US counterparts is that the latter have more appetite to buy and hold long-term.
“In line with Asia’s risk appetite, we can see institutions and Asian family offices doing a little more trading around ranges in the underlying assets,” Long said. “As investors become more familiar and comfortable with the asset class, you will probably see portfolios turn over more often than in the US or Europe.”