In a standout move, HashKey Capital, a financial services company focusing on digital assets based in Hong Kong, decided to dedicate a significant portion of its portfolio to altcoins. Despite Bitcoin (BTC) and ether (ETH) – the two giants of the crypto world – being the obvious choices for many investors, the fund is looking beyond these staples to diversify its investment pool, with smaller cap assets being given a larger slice of the pie.
HashKey Capital, operating under the guidance of portfolio manager Jupiter Zheng, aims to invest in these lesser-explored territories of digital currencies. With more than half of the total market cap of all cryptocurrencies attributed to bitcoin, it’s easy to see why many investors would get tunnel vision and solely focus on this behemoth. However, this move, whilst holding an element of risk, also opens up enormous profit potential. The diverse nature of altcoins makes them somewhat of an undiscovered field of virulent potential.
The fund, only recently opened for business, has succeeded in creating substantial hype and attracting high-net-worth individuals alongside investment firms primed on serving affluent Asian families. The well-founded speculation around the performance and profits of these upcoming digital currencies, coupled with the regulatory security provided by Hong Kong’s administration, provides an added layer of trust and transparency to these investments.
However, some scepticism still remains. It’s important to remember these are smaller cap assets, coming with more significant volatility and potentially less liquidity compared to the likes of Bitcoin and Ether. Furthermore, regulatory uncertainties, inconsistent attitudes, and policies among global authorities attribute to the potential risks that follow investments in altcoins.
Despite this, something must also be said for HashKey Capital’s initiative of focusing on a diverse portfolio rather than just concentrating on the two dominating crypto assets, as it seeks to raise an impressive $100 million to be exclusively invested in digital assets. Could this gamble potentially spark a shift in the investment habits of other financial service providers? Whether this results in a shower of profits or a lesson well learnt, only time will tell.
Dbid this move offer a more leveling approach to investment strategies or does it magnify the market’s unpredictability and risk? One certainty that does follow is the newfound excitement and focus on alternative crypto assets and the potential power-shift they might bring along in the global financial landscape.
Source: Coindesk
