Hong Kong is increasingly pivoting to becoming a global crypto hub.

A new fund in Hong Kong plans to raise $100 million this year to invest in digital asset startups, with the aim of boosting the city’s position as a fintech hub. The ProDigital Future Fund, led by Ben Ng and Curt Shi, has already secured at least $30 million in funding commitments from investors, including Sunwah Kingsway Capital Holdings and Golin International Group.

ProDigital Future Fund

The The ProDigital Future Fund will target early-stage and developing ventures, with a particular focus on tech companies with ties to China transitioning into Web3, a decentralized internet that runs on public blockchains. (BNN Bloomberg)

The fund has already invested in six digital focused projects up to this point, such as GigaSpace, a metaverse company based in Hong Kong, and One Future Football, a digital sports club located in Australia.

Hong Kong the draw

Hong Kong’s support for crypto exchanges stands in contrast to the sharp regulatory scrutiny seen in the US following FTX’s implosion last year, and there are concerns that Hong Kong could reverse course. Shi acknowledged these concerns but said the fund’s strategy was to keep watching industry progress.

Despite investor caution around deploying capital into new crypto projects, fundraising for the ProDigital Future Fund has been quite smooth, according to Shi. Many Hong Kong families interested in the digital economy have participated, along with some Chinese family offices interested in investing in Australia and Singapore.

While the fund welcomes Hong Kong and its policies, Shi said it would continue to have a presence in other countries including Australia, Singapore, Europe, and the US.

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