VMS Group, a prominent Hong Kong-based multi-family office managing over $4 billion in assets, is stepping into the world of digital assets. In its first move into crypto, the firm plans to invest up to $10 million into strategies managed by London-based Re7 Capital, according to a Bloomberg report.
This marks a significant strategic shift for VMS Group as it looks to diversify its portfolio. With private equity exits becoming more challenging and companies staying private longer, VMS is turning to more liquid assets such as crypto to meet investor demand and manage risk.
Growing Confidence in Crypto Driven by Regulation and Institutional Backing
Elton Cheung, Managing Partner at VMS Group, stated that the timing is right for this move, citing increasing global demand and stronger government support for digital assets. Cheung emphasized that improved regulatory clarity and a growing presence of institutional players have made crypto investments more appealing than ever.
Instead of directly managing crypto assets, VMS has opted to invest indirectly through Re7 Capital. Re7 is known for its focus on yield-generating strategies in decentralized finance (DeFi) and other crypto-related investments. This partnership allows VMS to gain exposure to crypto markets while leveraging the expertise of a specialized asset manager.
Hong Kong’s Pro-Crypto Policies Fuel Institutional Interest
Hong Kong has recently taken significant steps to support crypto innovation. Regulatory changes now allow professional investors to trade crypto derivatives, and a new bill has been approved to regulate fiat-backed stablecoins. These policies aim to build trust in the digital asset space and position Hong Kong as a hub for blockchain innovation.
In addition, the Hong Kong government is actively exploring blockchain technology for its central bank digital currency (CBDC) initiative. This includes working with Chainlink to enhance data integration and infrastructure for the e-HKD project.
As traditional firms like VMS Group enter the crypto space, it’s clear that the digital asset industry is gaining momentum among institutional investors—driven by regulation, technology, and the search for new growth opportunities.
