Sidley represented Axion Global Asset Management Limited (AGAM), an indirect, non-wholly-owned subsidiary of Edvance International Holdings Limited (HKEX: 1410), in securing regulatory approval from the Hong Kong Securities and Futures Commission (SFC) to manage 100% virtual asset portfolios. Sidley was among the first law firms in Hong Kong to secure such an approval for a client, and has acted on half of the approved virtual asset applications for licensed fund managers to date in the burgeoning virtual asset fund management sector in Hong Kong.
The Sidley team that secured AGAM’s regulatory approval from the SFC was led by partner and co-leader of the global Investment Funds group, Effie Vasilopoulos (Hong Kong), and supported by counsel Dominic James (Hong Kong) and associate Angel Chim (Hong Kong).
AGAM will launch its new flagship product, Smart Beta Fund SP, which enables Professional Investors to invest confidently in the fast-growing cryptocurrency market via a secure and regulated investment vehicle. The Fund seeks to provide superior risk-adjusted returns by tracking the Axion Global Smart Beta Liquidity Index. The Index has consistently outperformed industry benchmarks and is comprised of the ten most highly valued qualified cryptocurrencies weighted by proprietary investment factors.
There is a growing interest and momentum in the market for similar virtual asset funds, and Sidley notes a substantial increase in inquiries from industry participants in relation to the submission of similar applications.
Sidley is at the cutting edge of virtual assets legal work and has been actively advising clients in relation to tokenized funds, non-fund tokenized offerings, virtual asset funds and the complex and rapidly evolving regulatory requirements for managing investments in virtual assets, including in relation to a wide range of participants servicing the virtual assets ecosystem. Sidley advised on the formation of Asia’s first tokenized funds, the establishment of Asia’s first tokenized, Bitcoin-themed quantitative fund and a range of other regulatory approvals that are being advanced by industry leaders in the virtual asset sector.
Our Hong Kong team leverages the global reach and talent of the firm’s lawyers across multiple offices, disciplines and industry groups in the fintech and blockchain group. Success in this dynamic space requires a contextual understanding of the specific laws and best practices that pertain to the industries within which these new and complex technologies are being implemented. This cross-disciplinary coordination sets Sidley apart from our competitors and is essential to meeting the needs of our fast-moving client base.