Baker McKenzie assisted SFC-licensed blockchain and virtual assets manager MaiCapital Limited ("MaiCapital" or "Company") in securing approval from the Hong Kong Securities and Futures Commission ("SFC") to manage portfolios that comprise up to 100% virtual assets.

The Baker McKenzie team advising MaiCapital comprised virtual asset specialists Joy Lam and Ryan Chan.

“Securing this approval cements MaiCapital's enviable position as a leader and a pioneer of virtual asset fund management in Hong Kong. Virtual asset funds offered by SFC licensed managers are now at an inflection point, which has been driven by the evolution of investment strategies as the asset class has matured and the exponential growth in interest from institutional investors," Joy Lam said. "As the Company looks to augment its portfolio with more innovative product and service offerings and expand into new markets, we look forward to leveraging our unparalleled experience with cutting-edge virtual asset offerings and our unmatched full service global network as we continue to support MaiCapital's legal needs."

MaiCapital is a leading alternative investment manager in Hong Kong and a pioneer in applying institutional investment practices to the innovative cryptocurrency space.

Since securing licenses from the SFC to conduct Type 4 (advising on securities) and Type 9 (asset management) regulated activities in 2018, the Company has been operating two actively managed blockchain-themed hedge funds — the Blockchain Opportunity Fund and the Bitcoin Plus Investment Fund ("Funds"). The Funds deploy a range of investment strategies including systematic and quantitative trading, market-making and arbitrage algorithmic trading across a range of instruments including cryptocurrency futures and derivatives, contracts for difference and the top 50 liquid coins.

The Funds are the most complex investment funds which can comprise up to 100% virtual assets that the SFC has approved a licensed manager to manage. MaiCapital's approval heralds a new phase of increasingly sophisticated, institutional grade virtual asset funds offered by SFC licensed managers. The latest development also demonstrates the SFC's willingness to approve more innovative and complex products, which will significantly bolster the investment strategies available to investors beyond tracker and simple long-only products which characterized earlier SFC approvals.

The Funds are supported by leading global service providers including Coinbase, OSL and trading venues for cryptocurrency futures contracts that are regulated by the United Kingdom's Financial Conduct Authority.

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