Hong Kong SFC-licensed blockchain and virtual assets manager, MaiCapital Limited (SFC CE#: BMC948), is pleased to announce that it has secured approval from the Hong Kong Securities and Futures Commission (the “SFC”) to manage portfolios that may comprise up to 100% of virtual assets and is subject to the SFC’s “Proforma Terms and Conditions for Licensed Corporations which Manage Portfolios that Invest in Virtual Assets” (“T&C”).
MaiCapital is also pleased to welcome Wealthking Investment (SEHK: 1140.HK, formerly OP Financial Limited) as a new investor and shareholder of the MaiCapital group. Wealthking brings a wealth of expertise and support from the world of traditional finance to this pioneering crypto native financial institution. Looking ahead, with the approval from the SFC and support from Wealthking, MaiCapital intends to further expand its offering of virtual asset fund products and regulated crypto services to investors worldwide and to grow its institutional business to a combined AUM of over US$200 million.
Chairman of Wealthking Liu Zhiwei said, “as a pioneer in bringing proven financial practices and compliant operations to the world of virtual asset investments, MaiCapital is perfectly built to bridge institutional investors into this exciting new asset class. With the extended approval from SFC, MaiCapital is on an even greater trajectory to bring more innovative investment products and services to professional and institutional investors. Wealthking firmly believes in the development potential of Blockchain technology plus digital economy and has invested heavily in these areas for the past few years. The next step will be to optimally utilize our strengths to help MaiCapital reach greater heights.”
Since securing its licenses from the SFC to conduct Type 4 (advising on securities) and Type 9 (asset management) regulated activities in 2018, MaiCapital has been operating two actively managed blockchain-themed hedge funds which have achieved more than 20 times growth in total AUM since 2019 by employing a number of proprietary trading strategies and utilizing a range of crypto-related investment instruments to bring about enhanced investment returns whilst complying with relevant regulatory requirements. The latest approval from the SFC will allow MaiCapital to deploy its award-winning investment strategies in the cryptocurrency markets with greater flexibility and to significantly augment its offering to investors.
MaiCapital’s flagship hedge fund, the Blockchain Opportunity Fund, is the first virtual asset-themed fund managed by a SFC-licensed manager to garner more than 3 years of track record. The Blockchain Opportunity Fund has consistently provided investors with superior, risk-adjusted returns year over year and has been globally recognized. Notably, the Blockchain Opportunity Fund’s 2021 return was ranked by Preqin amongst the Top 3 hedge funds across all of Asia. MaiCapital’s second fund, the Bitcoin+ Fund, is equally unique in the industry as it employs quantitative strategies seeking to not only track, but also to outperform, Bitcoin in various market conditions. Both funds only accept investments from institutions or qualified Professional Investors.
As a licensed manager in compliance with the T&Cs, MaiCapital only partners with regulated exchanges and custodians in the management of its blockchain-themed funds. These service providers include Coinbase, OSL, both a regulated custodian, as well as cryptocurrency futures contracts trading venues and counterparts that are regulated by the UK Financial Conduct Authority.
“Coinbase Institutional provides clients the scale and stability needed to successfully participate in the crypto economy,” said Kayvon Pirestani, Head of APAC Institutional Sales of Coinbase. “It is so exciting to be working with MaiCapital and to provide access to our comprehensive suite of products and services including custody, prime brokerage, trading tools and analytics, and an enterprise infrastructure built on top of a robust security platform.”
“MaiCapital and OSL have a long-standing and trusted relationship,” said OSL Digital Securities Head of Sales Ryan Miller. “In Hong Kong, there now is increased regulatory clarity for participants on both the buy side, with asset managers such as MaiCapital, and the sell side, with SFC type 1 and 7-licensed OSL Digital Securities. The door is open for professional investors to confidently take advantage of the growing digital assets space in the territory.”
“MaiCapital has always prided itself in its ability to invest in the nascent cryptocurrency asset class with the highest compliance standards and an unyielding focus to protect the interests of investors,” said MaiCapital’s CEO, Benedict Ho. Behind MaiCapital’s legal and compliance support are the leading global law firm, Baker McKenzie, and Hong Kong regulatory compliance expert, Prosynergy Consulting Limited.
“Having worked with the MaiCapital team since 2018, I am thrilled to see their dedication and commitment recognized. MaiCapital’s Blockchain Opportunity Fund is, by some measure, the most complex virtual asset fund that an SFC licensed manager has received SFC approval to manage,” said Joy Lam, Partner of Baker McKenzie.
“We are delighted to be able to work with MaiCapital throughout the process in obtaining the approval from the SFC to manage its portfolios of up to 100% in virtual assets. With a professional and focus team, they have demonstrated to the regulator that they are very capable of delivering complex products in accordance with rules and expectation of the regulator which will stand MaiCapital in good stead for its future expansion,” said Louie Lee, MD of Prosynergy Consulting Limited.
