Blockchain and virtual assets manager MaiCapital has gained approval from the Hong Kong Securities and Futures Commission (SFC) to manage portfolios that may comprise up to 100% of virtual assets.
Concurrently, Wealthking Investment, a traditional investor, has become a new shareholder of the MaiCapital group. MaiCapital intends to further expand its offering of virtual asset fund products and regulated crypto services to investors worldwide and to grow its institutional business to a combined AUM of over $200m, according to a statement by the firm.
“Wealthking firmly believes in the development potential of blockchain technology plus digital economy and has invested heavily in these areas for the past few years. The next step will be to optimally utilise our strengths to help MaiCapital reach greater heights,” said chairman of Wealthking Liu Zhiwei
Since securing its licenses from the SFC to conduct Type 4 (advising on securities) and Type 9 (asset management) regulated activities in 2018, MaiCapital has been operating two actively managed blockchain-themed hedge funds which have garnered 20 times growth in total AUM since 2019 by employing a number of proprietary trading strategies and utilising a range of crypto-related investment instruments to bring about investment returns while complying with relevant regulatory requirements.
MaiCapital’s flagship hedge fund, the Blockchain Opportunity Fund, has three-year track record. Its 2021 return was ranked by Preqin among the top three hedge funds across Asia, according to the firm. MaiCapital’s second fund, the Bitcoin+ Fund, employs quantitative strategies seeking to outperform bitcoin in various market conditions.
Both funds only accept investments from institutions or qualified professional investors.
MaiCapital partners with regulated exchanges and custodians in the management of its blockchain-themed funds. These service providers include Coinbase and OSL — both regulated custodians — as well as cryptocurrency futures contracts trading venues and counterparts that are regulated by the UK Financial Conduct Authority.
Behind MaiCapital’s legal and compliance support are the leading global law firm, Baker McKenzie, and Hong Kong regulatory compliance expert, Prosynergy Consulting Limited.
MaiCapital is subject to the SFC’s “Proforma Terms and Conditions for Licensed Corporations which Manage Portfolios that Invest in Virtual Assets”.