Singaporean asset manager Whampoa Group plans to establish a venture capital fund and a crypto hedge fund for investments in digital assets.
On early estimates, the company plans to allocate $100 million.
$100 million venture capital fund
The group has earmarked $100 million for the venture fund while it plans to raise $50 million for the crypto hedge fund. It has created a new entity called Whampoa Digital, which aims to raise capital from third parties to invest in the digital asset market.
The Whampoa Group’s multiple investment strategy includes a $100 million private market asset fund and a $50 million public market hedge fund, media reports said.
The private venture capital fund, likely to launch in the next quarter, will invest in Web 3 start-ups. Then Whampoa Digital will increase the fund to scale investments.
“We think there’s great conviction in this space. The venture capital fund will help us expand our footprint in this area,” Shawn Chan, CEO of Whampoa Group, told Reuters.
He added that the proposed crypto venture fund has received encouraging responses from Asian tech companies and corporate groups. High internet penetration and demographics promise massive adoption of Web3 products and services in Southeast Asia, Shan explained.
Whampoa Group is a multi-family investment firm co-founded by Amy Lee and Lee Han Shih. Both belong to the extended family of Lee Kuan Yew, who was the city-state’s first prime minister and remained in power from 1959 to 1990.
The group had participated in a $500 million fund announced by Binance Labs in June this year to drive adoption of Web3 and blockchain technology. Its investment portfolio includes approximately 200 companies.
In addition to use in remittances and the entertainment industry, Web 3 start-ups in Defi have long-term growth potential, said Aureole Foong, senior partner at Whampoa Group.
More funds focusing on digital assets
In August, UK-based wealth management firm Brevan Howard announced a $1 billion crypto hedge fund. In a recent filing with the United States SEC, the company provided details of the $210 million it raised through two sub-entities.
A June survey by PricewaterhouseCooper (PwC) said traditional hedge funds do not appear to be deterred by a crypto market crash as they continue to invest in such products and assets. PwC’s 4th Annual Global Crypto Fund report found that 38% of traditional hedge funds were already investing in digital assets, up 17% from the previous year.
Also, two-thirds of crypto investors who participated in the survey planned to increase their investments by the end of 2022.
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