Hong Kong fund aims to bet $100M, thanks to city’s crypto push

• Hong Kong-based ProDigital Future is going all in on crypto with a $100 million fund for digital asset investment.
• The fund will invest in early-stage and developing ventures, along with tech firms with ties to China. 

Hong Kong is ramping up its efforts to become a regional fintech hub, with a new fund aiming to raise $100 million this year to invest in digital assets.

The ProDigital Future Fund, led by venture partner Ben Ng and tech investor Curt Shi, has already secured $30 million in funding commitments from the likes of Sunwah Kingsway Capital Holdings Ltd. and Golin International Group Ltd. The fund expects to raise $100 million by the end of 2023. 

ProDigital Future Fund will embrace Hong Kong’s crypto policies

According to a report by Bloomberg, the fund will target early-stage and developing ventures, particularly tech companies with ties to China transitioning into Web3.

To date, the fund has invested in six digital-asset projects, including Hong Kong-based metaverse outfit GigaSpace and Australia-based digital sports club One Future Football.

Investors have been cautious about investing in new crypto projects, but according to Shi, fundraising has been “relatively smooth.”

A number of investors in Hong Kong are reportedly interested in participating in the digital economy, in addition to some Chinese family offices investing in Australia and Singapore, which are also looking to get involved.

Hong Kong’s support for crypto exchanges contrasts with sharp U.S. regulatory scrutiny in the wake of FTX’s stunning collapse last year, and fears linger that Hong Kong could one day reverse course. 

“I understand the concerns, but nothing is perfect given the complexity of the crypto economy and current geopolitical situation. Our strategy is to continue to see how things go. While our portfolio and fund will embrace Hong Kong and its policies, we will continue to have a presence in Australia, Singapore, as well as in Europe and the US,” Shi stated in an interview with Bloomberg.