JAN 9, 2024
Metalpha invests in Nextgen Digital Venture
Metalpha Technology Holding Limited, based in Hong Kong, has strategically invested in NextGen Digital Venture Limited, aiming to enhance institutional participation in the digital asset space. This move is part of Metalpha's broader effort to bridge the gap between traditional finance (TradFi) and the crypto sphere.
Building on Next Generation Fund
News of the collaboration broke via a PR Newswire press release published by Metalpha on Monday. The deal builds upon a previous partnership struck by the two companies in April of last year, which resulted in the creation of Next Generation Fund I.
This fund is specifically tailored to leverage Grayscale Investments LLC's suite of products, with Grayscale being one of the world’s largest crypto asset managers. Notably, the fund has demonstrated solid performance, surpassing bitcoin's annualized return by 35%. This success has instilled confidence in Metalpha, fostering optimism for the fund's future achievements.
NextGen Digital is a Hong Kong-based investment company that aims to provide cryptocurrency and Web3 exposure to institutional clients in the conventional finance realm. Alongside its previous partnership with Metalpha, the firm has invested directly in Web3 startups such as iZumi Finance, a liquidity-as-a-service DeFi protocol.
In announcing the Metalpha investment, NextGen founding partner Jason Huang said that the company “is committed to providing secure, compliant cryptocurrency investment opportunities and is always focused on achieving alpha returns.”
The company is leveraging its Hong Kong Type 9 license, while aspiring to deliver secure and compliant cryptocurrency investment opportunities.
Adrian Wang, president and director of Metalpha Technology Holding, expressed enthusiasm about the partnership, stating:
"The launch of the NextGen fund marks the first step for both parties to jointly develop compliant products with generous returns. We look forward to establishing a more solid partnership in the future.”
Wang had previously stated that clients of the Next Generation Fund were overseas Chinese institutions. “Some of them are family offices, some of them are public companies,” he stated.
On-boarding TradFi investment
Positioned as a notable platform in Asia, NextGen aims to facilitate traditional finance's seamless entry into the realm of cryptocurrencies. This strategic investment by Metalpha underscores the evolving landscape where traditional financial institutions increasingly embrace the potential of digital assets.
Metalpha, recognized as one of Asia's leading providers of crypto derivatives solutions, collaborates closely with traditional financial entities, including family offices and crypto mining firms. Holding both Type 4 and Type 9 licenses from the Securities and Futures Commission (SFC) of Hong Kong, Metalpha is authorized to advise on securities and engage in real estate investment scheme management or securities and futures contracts management.
In May of last year, Metalpha secured a $5 million investment from leading crypto mining equipment manufacturer, Bitmain. Metalpha counts hybrid crypto exchange GRVT among its portfolio of investments. In September it emerged that it had invested in ParaX, a Web3 super app developed by Parallel Finance. In February 2023, the Litecoin Foundation partnered with Metalpha in an effort to provide environmentally friendly mining techniques to the Litecoin ecosystem.