Hong Kong’s Metalpha Technology teams up with NextGen Digital Venture to co-launch a new fund targeting the world’s largest bitcoin investment firm Grayscale. 

Hong Kong cryptocurrency asset management firm Metalpha Technology has co-launched a new “Next Generation Fund 1” alongside NextGen Digital Venture to invest in products offered by the largest bitcoin investment fund in the world, Grayscale Investments LLC.

Metalpha is the strategic partner of Beijing-headquartered bitcoin mining equipment maker Bitmain. Hong Kong-based NextGen Digital Venture provides crypto services to traditional investors.

Having already raised US$20 million with a US$100 million target, the funds will be used both directly and indirectly through structured derivatives.

Adrian Wang, the President of Metalpha Technology commented, “In general, traditional investors such as public-listed companies have found it challenging to access cryptocurrencies and related financial products. Public listed firms, for example, have compliance concerns when holding cryptocurrencies. The fund offers traditional investors an indirect exposure to Bitcoin, which investors subscribe with fiat currency in a compliant way.”

NextGen Digital Venture will be the investment manager of the Next Generation Fund while Metalpha’s subsidiary LSQ Capital will act as its sub-investment manager.

“The fund is open-ended but with a lock-up period, meaning investors can subscribe at the beginning of each month. As the fund runs for one and half years, they can’t redeem until around six months after the Bitcoin halving,” Adrian added.

Around every four years – or 210,000 blocks – Bitcoin mining transactions are halved, resulting in the rate at which new bitcoins are released into circulation being cut in half. During Bitcoin halving events when supply decreases, demand increases, and prices are projected to rise. The next halving is anticipated in April or May 2024.

Grayscale enables investors to access the digital economy through a family of secure, regulated, and future-forward investment products. Founded in 2013, Grayscale has a proven track record and unrivalled expertise as the world’s largest digital currency asset manager. Investors, advisors, and allocators turn to Grayscale’s private placements, public quotations, and ETFs for a single asset, diversified, and thematic exposure.

Featured banner image credit: @grayscaleinvestments


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