The family office VMS Group from Hong Kong, which manages assets totaling approximately $4 billion, is considering investing up to $10 million in the cryptocurrency hedge fund Re7 Capital. This move will mark the company’s first experience in the realm of digital assets and reflects its desire to diversify its investment portfolio through more liquid instruments.
This is reported by Business • Media
VMS Group’s Investment Strategy
According to VMS Group’s managing partner Elton Cheung, the company chose Re7 Capital due to its market-neutral strategy, which combines volatility hedging with providing liquidity on decentralized exchanges and lending in stablecoins. This approach minimizes risks associated with price fluctuations in cryptocurrencies, unlike direct investments in Bitcoin or altcoins.
VMS Group is also exploring the potential for developing its own technology projects in the field of crypto payments and digital infrastructure, particularly in the context of real estate development in Vietnam.
Advantages of Re7 Capital’s Market-Neutral Strategy
The Re7 Capital fund specializes in investments with minimal exposure to market volatility, making it attractive to large institutional investors seeking more stable solutions in the digital asset market. Representatives of VMS Group emphasized that the main goal is to find instruments with more predictable returns and protection against sharp price fluctuations.
“We decided that now is the right time due to increasing demand and because we see clearer legislative and governmental support from various jurisdictions, as well as significant backing from institutions,” said Cheung.
It is worth noting that recently, the Spanish bank BBVA advised wealthy clients to invest up to 7% of their investment portfolios in cryptocurrencies, indicating a growing trust in digital assets among global financial institutions.