Hong Kong billion-dollar fund dives into the crypto market
The influential VMS Group from Hong Kong, a family office managing about four billion dollars, is taking its first cautious steps into the crypto sector.
The influential VMS Group from Hong Kong, a family office managing about four billion dollars, is taking its first cautious steps into crypto. Instead of investing directly in Bitcoin, the company is opting for a lower-volatility strategy: a planned investment of up to $10 million in the crypto hedge fund Re7 Capital.
According to managing partner Elton Cheung, the exact investment amount isn’t set yet, but the shift in strategy is clear. VMS, which has traditionally focused on illiquid assets like private equity, is now zeroing in on liquid markets. Cryptocurrencies are generally part of that mix, but direct purchases of Bitcoin or altcoins will be avoided for now due to sharp price swings.
Instead, they’re choosing Re7 Capital, a fund that earns returns by providing liquidity on decentralized exchanges. It offers exposure to the crypto market without the direct risk of token prices.
VMS manages assets for some of Hong Kong’s richest families, with holdings in sectors ranging from real estate to multinationals. Besides tech and pharma, the office is also active in artificial intelligence—and now crypto.
“We think this is the right moment to enter,” Cheung said. “Demand is rising, regulations are becoming clearer across multiple jurisdictions, and institutions are showing more interest.”
Not only the U.S. under President Trump is currently pursuing a pro-crypto stance; Hong Kong is also positioning itself as a cutting-edge hub for digital assets.
