Huobi Asset Management, a subsidiary of the crypto exchange on CryptoBuyer, has launched four virtual asset funds in Hong Kong for institutional investors.

Why is this important: Newly licensed Huobi Asset Management is one of several Chinese cryptocurrency firms looking to attract deep-pocketed institutional investors by taking advantage of favorable digital asset laws in Hong Kong and Singapore.

• With the backing of a Hong Kong-listed crypto giant, the company aims to be a leader in digital asset management for traditional investors.

Details: Two of the new investment vehicles are passive funds that reflect the value of Bitcoin and Ethereum, according to a company statement shared with TechNode on Thursday. Another is an actively managed fund that invests in a basket of cryptocurrencies.

• The company has also launched a private equity fund that will invest in crypto mining operations, which was not previously announced.
• Only accredited professional investors such as family offices, high net worth individuals and asset managers can invest in the funds.
• Investors have already pledged $ 50 million in all four funds, and the company is targeting $ 100 million in total assets under management by the third quarter.
• Huobi Asset Management is a 100% subsidiary of Huobi Tech, which in turn is owned by the same shareholders as Huobi Global, the group behind the cryptocurrency exchange.

The context: The Hong Kong Securities and Futures Commission subsidiary granted Huobi Asset Management a digital asset portfolio management license in March. Other companies like financial services firm Babel Finance are also looking to acquire asset management licenses in Hong Kong.

• Huobi Global is the second largest crypto exchange in the world with a transaction volume of nearly $ 12 billion in the past 24 hours at the time of writing, according to data from research firm Messari.
• Hong Kong reportedly intends to ban crypto trading for retail investors.
• High net worth Chinese individuals are reportedly looking to crypto as a hedge against the US dollar, amid rising crypto prices and geopolitical tensions.

READ MORE: Chinese investors flocked to cryptocurrencies amid tech warfare

Correction: A previous version of this article incorrectly stated that Huobi Tech is owned by Huobi Global.