Sidley’s market-leading investment funds team represented Huobi Asset Management (Hong Kong) Limited (CE No.: BPK544) (Huobi AM) in securing regulatory approval from the Hong Kong Securities and Futures Commission to manage 100% virtual asset portfolios, only the second such approval to be issued by the Hong Kong regulator.
Sidley is also advising Huobi AM on several proposed fund launches. This includes two passive cryptocurrency tracker funds, one actively managed multi-strategy virtual assets fund,and one multi-asset fund with an allocation of up to 10% of virtual assets, alongside traditional assets such as equities and fixed income.
Each of the funds will permit subscriptions and redemptions in the form of virtual assets in addition to fiat currency and interests in each fund are expected to be tokenized. Huobi AM’s virtual assets funds will be Asia’s first regulated 100% virtual assets funds in which interests are tokenized.
Huobi AM is a subsidiary of Huobi Technology Holdings Limited (stock code: 1611), which is listed on the mainboard of The Stock Exchange of Hong Kong. Huobi AM’s vision is to bridge the gap between traditional and virtual asset investments and offer integrated investment solutions to professional investors.
The Sidley team advising Huobi AM was led by partner Joy Lam (Hong Kong) and included associates Jason Chan (Hong Kong) and Deanna Liu (Hong Kong), and licensing advisor Ryan Chan (Hong Kong).
Sidley is at the cutting edge of virtual assets legal work and has been actively advising clients within the virtual assets ecosystem in relation to tokenized funds, non-fund tokenized offerings,and the complex and rapidly evolving regulatory requirements for managing investments in virtual assets, and providing infrastructure that services the virtual assets ecosystem. Amongst others, Sidley advised on the formation of Asia’s first tokenized fund and the establishment of Asia’s first tokenized, Bitcoin-themed quantitative fund.