Chinese Crypto Exchange Huobi Plans Its Owns Grayscale-Like Crypto Funds for Asia

As the Asian cryptocurrency market continues to mature, Asia’s biggest crypto trading platform Huobi cites an opportunity here! As per the latest info from Chinese journalist Wu Blockchain, Huobi Global is planning to launch cryptocurrency funds similar to Grayscale, but for the Asia markets.

The announcement by the reporter states:

“Breaking: China’s largest exchange Huobi has obtained a Hong Kong cryptocurrency fund license, and it will launch Bitcoin, Ethereum and multi-strategy funds on March 3. Similar to the Grayscale, this move by Huobi may promote traditional Asian investors to cryptocurrency field.”

While not many details are officially available at this moment, Wu Blockchain adds that considering that Huobi has a large presence in the Asian market, the launch of its crypto funds can have a significant impact on the Bitcoin and Ethereum prices.

However, Huobi is not completely out of the muddy waters. The reporter goes on to add that while the exchange might have secured the license, its founder JunDu is yet not allowed to leave China due to an investigation launched by the Chinese police last November 2020.

Reportedly, the founder was taken to police custody following misuse of investors’ funds. Huobi Global later released a statement stating that the rumors of arrest are absolutely false and that all investors’ were safe.

Asian Investors Losing Their Holdings to Americans

Interestingly, the latest Huobi news comes at a time when there’s clear evidence of transfer of liquidity from Chinese investors to American investors. Citing data from Beatlenews, Grayscale, and Chainalysis, Wu Blockahin reports:

“In the past year, the BTC holdings in Asia have fallen more than 400,000, and the BTC holdings in North America (represented by US) have increased by more than 600,000. This prove again that Chinese holds are selling and American institutions are buying”.

Courtesy: Grayscale, Chainalysis

It will be interesting to see how Asian investors respond to the launch of these crypto funds. On the other end, it will certainly bring more legitimacy and maturity to the Asian crypto market.

The post Chinese Crypto Exchange Huobi Plans Its Owns Grayscale-Like Crypto Funds for Asia appeared first on Coingape.