Hong Kong's renowned multi-family wealth management institution VMS Group is taking its first step into the cryptocurrency market. According to Bloomberg, this wealth management firm, which manages nearly $4 billion in assets, plans to invest up to $10 million in the decentralized finance (DeFi) hedge fund Re7 Capital, marking a significant shift in its strategy.
Since its establishment twenty years ago, VMS has focused on private equity and long-term capital operations, serving several wealthy families in Hong Kong, and has been involved in industries such as real estate, corporate groups, technology, and pharmaceuticals. Mr. Zhang, the executive partner, stated that in response to the increasing trend of private companies delaying IPOs and the rising difficulty of exits, the company is seeking to allocate some funds to more liquid assets, with cryptocurrency being a key component.
"Now is the right time to enter," Zhang pointed out, "as market demand continues to heat up, regulatory clarity is emerging, and government and institutional support is strengthening." He mentioned that the legal and regulatory environment for crypto assets is improving, which also prompts VMS to view crypto as a new frontier in asset allocation.
This investment will not directly involve highly volatile crypto tokens, but will proceed through Re7 Capital's market-neutral strategy— the fund primarily earns returns through liquidity provision and stablecoin lending on decentralized exchanges, and uses hedging methods to reduce the risk of price fluctuations. Evgeny Gokhberg, founder of Re7 Capital, stated that since its establishment in 2021, the company has maintained double-digit annual returns, focusing on DeFi yield strategies and real-time on-chain data analysis to avoid speculative spikes and crashes.
VMS's move also echoes the global shift in institutional attitudes towards cryptocurrencies. Since the re-election of Donald Trump as President of the United States and his clear support for the crypto industry, market sentiment has quickly rebounded, with Bitcoin prices soaring nearly 50% post-election. The successful IPO of Circle Internet Group further boosted confidence.
In addition to investing in Re7, VMS is also exploring integrating crypto payments into real business scenarios. Li Zhi, the head of digital assets, revealed that the company is studying the introduction of a digital currency payment system for its real estate projects in Vietnam. He pointed out: "Nowadays, more and more young generations of wealthy families are eager to try emerging asset classes, showing strong interest in regulated crypto investments."
This trend also reflects the evolution of the entire wealth management industry. JPMorgan Chase recently announced that it would allow clients to use crypto assets as collateral for loans. For established institutions like VMS, venturing into crypto is not only about finding new sources of revenue but also about planning for the future to cater to the next generation of clients.
