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Metalpha, NextGen Unveil Fund for Institutional, HNW Investors Seeking Crypto Exposure

Next Generation Fund I aims to provide institutions, family offices, and high-net-worth individuals with a compliant channel to gain indirect exposure to the cryptocurrency market.

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Nasdaq-listed Metalpha Technology Holding has announced a partnership with NextGen Digital Venture to launch Next Generation Fund I, a structured investment channel that will focus on Grayscale Investments' suite of products.

These products provide access and exposure to cryptocurrencies with strong liquidity and large market capitalization, an announcement on Wednesday said.

"Grayscale is one of the largest digital asset fund managers in the world, and we are optimistic about the future growth of Grayscale powered by crypto adoption," said Adrian Wang, president of Metalpha Technology Holding, said in the announcement.

The partnership between Metalpha and NextGen aims to provide investors with a compliant and regulated way to gain exposure to the cryptocurrency market. As cryptocurrencies continue to gain mainstream acceptance and adoption, institutional and individual investors are seeking opportunities to participate in this emerging asset class.

The launch of the fund, said to have a US$100 million target, comes at a time when the cryptocurrency industry is experiencing a bear market. However, Hong Kong-based Metalpha believes that now is the opportune time to start investing for the future success of cryptocurrencies.

"Despite the fact that the crypto industry is still in a bear market, we believe now is the time to start investing for the future success of crypto. We want to provide compliant access channels to crypto for individuals and institutions and become the most trusted asset manager in this field. We believe working with Metalpha will create more opportunities for institutions/individuals to gain necessary exposure to crypto," said Jason Huang, founding partner of NextGen Digital Venture.

NextGen Digital Venture will be the investment manager of the Fund, while LSQ Capital Limited, a wholly-owned subsidiary of Metalpha that is licensed by the Securities and Futures Commission of Hong Kong to carry on Type 4 (Advising on Securities) and Type 9 (Asset Management) regulated activities, will be the sub-investment manager of the Fund.

Established in 2021, Metalpha provides cryptocurrency derivative products to institutions, which include exchanges, miners, funds, family offices, as well as custom instruments for sophisticated investors to establish or liquidate investment positions or undertake hedging strategies.

Related: Hong Kong's Metalpha to Grow Presence in Digital Asset Wealth Management

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