VMS Group Allocates $10 Million to Crypto Market for First Time

VMS Group, a family office based in Hong Kong with nearly $4 billion in assets under management, is making its first foray into the cryptocurrency market. The firm has set aside up to $10 million for investment strategies managed by Re7 Capital, a decentralized finance (DeFi) hedge fund. This move marks a significant shift in VMS's investment strategy, which has traditionally focused on private equity.

According to Elton Cheung, a partner at VMS, the decision to diversify into more liquid investments is driven by the evolving landscape of private equity. Cheung noted that private equity has become less liquid as companies are choosing to remain private for extended periods. This trend has prompted VMS to explore new investment avenues, including the crypto market.

Cheung also highlighted the growing institutional demand for digital assets and the clearer regulatory treatment of these assets in various jurisdictions as key factors influencing VMS's decision to enter the crypto space. The firm's move into crypto is part of a broader strategy to diversify its investment portfolio and capitalize on the increasing interest and acceptance of digital assets within the financial community.

VMS's allocation of up to $10 million to Re7 Capital's investment strategies underscores the firm's commitment to exploring the potential of the crypto market. This investment is expected to provide VMS with exposure to the dynamic and rapidly evolving world of decentralized finance, while also offering the potential for significant returns.

As VMS ventures into the crypto market for the first time, it joins a growing number of family offices and institutional investors seeking to diversify their portfolios and capitalize on the opportunities presented by digital assets. The firm's decision to allocate funds to Re7 Capital's investment strategies reflects its confidence in the potential of the DeFi sector and its commitment to staying at the forefront of financial innovation.