by Metalpha Raising $100M to Offer Grayscale Bitcoin Products
• Metalpha Technology is raising a $100 million fund to invest in Bitcoin and other crypto products from the major US-based crypto asset manager, Grayscale Investments.
• The new Next Generation Fund I will help Chinese investors get a regulated channel to invest in cryptocurrencies and Web3.
• Metalpha has secured $20 million out of the planned $100 million for its new fund from overseas Chinese investors.
About Metalpha
Metalpha Technology is a Hong Kong-based cryptocurrency wealth manager working to offer new entry points into Bitcoin BTC $29,838 and Web3 to investors in Asia. Founded in 2015, it was originally known as Dragon Victory International, offering supply chain management platform services and cryptocurrency derivatives product services in Hong Kong. The firm rebranded to Metalpha in late 2022 after receiving a Nasdaq notification regarding minimum bid price deficiency. Metalpha regained compliance with Nasdaq’s listing rules as of April 2023.
Next Generation Fund I
The Next Generation Fund I will invest directly in Grayscale’s crypto investment products and indirectly through structured derivatives related to Grayscale’s products, allowing institutions and high-net-worth individuals to get indirect exposure to crypto. It aims to help Chinese investors get a regulated channel to invest in cryptocurrencies and Web3. According to the CEO Adrian Wang, the company has secured $20 million for its new fund since March with many Chinese investors having shown interest due increased demand following difficulties connected with the bear market of 2022 and the collapse of FTX exchange.
Increased Demand For Products
Adrian Wang noted that they had seen an increase in demand for their products recently stating “A lot of our clients are family offices with traditional backgrounds, rather than pure crypto or pure Web3 native investors […] It’s overseas Chinese institutions — some of them are family offices, some of them are public companies.” He also added that people are gaining more confidence now as “a lot of new traffic is coming in”.
Conclusion
Metalpha’s upcoming project will allow Chinese investors access into regulated channels for cryptocurrencies and Web3 investments by investing directly or indirectly through structured derivatives related Grayscale’s products. The company has successfully raised $20 million out of its planned $100 million fund from overseas Chinese investor which should grow even further due increasing demand now that people have become more confident post bear market period and FTX exchange collapse
