The development speaks to how Hong Kong has been busily ramping up efforts to stand out as a digital assets jurisdiction.

Switzerland-headquartered AMINA Bank, which focuses on the cryptocurrency space, is partnering with Nasdaq-listed Metalpha Technology Holding, an Asia-based wealth manager concentrating on digital assets.

The bank has kicked off its pact by distributing Principal Fund I.

AMINA said the partnership is designed to advance digital asset wealth management capabilities in Hong Kong.

This partnership positions AMINA, through its Hong Kong subsidiary, AMINA (Hong Kong) Limited, to be among the first regulated crypto service providers to offer a crypto equity exposure product to qualified professional investors in the Hong Kong market, AMINA said in a statement today. 

The announcement comes just over a week after AMINA announced that Michael Benz had been named head of Asia-Pacific for AMINA Bank.

“Hong Kong has strategically focused on building institutional crypto infrastructure first, and we're now witnessing the natural evolution towards broader professional investor adoption,” Benz said. “Through our partnership with Metalpha, AMINA is positioned to bridge this transition to provide the sophisticated investment strategies that the market demands.”

“This is just the first of many products we will be working on together,” Benz added. 

AMINA said there is “record institutional demand” for crypto exposure, with US bitcoin exchanged-traded funds surging in AuM growth, accumulating to more than $150 billion since early 2024.

Principal Fund I offers exposure to the broader crypto ecosystem through a portfolio of listed equities, including prominent names such as Coinbase, Circle, and MicroStrategy from the US market, as well as those listed in Hong Kong. 

AMINA said the fund has outperformed the benchmark index by more than 20 per cent since August 2024. The fund's core strategy is to achieve a better risk-adjusted return over bitcoin by employing derivatives positioning to enhance performance and manage volatility. 

Managed by the Hong Kong SFC Type 9 licensed LSQ Capital Limited, the fund is available to qualified professional investors with a minimum investment of $1 million.

"In collaboration with AMINA Bank, we are supporting global ultra-high net worth clients in accessing digital asset opportunities through a more secure, trusted, and regulated approach,” Monique Chan, CEO of Metalpha's Hong Kong licensed subsidiary LSQ Capital Ltd, said.

Hong Kong is seeking to push its credentials as a stand-out centre for digital assets/cryptocurrencies. The Hong Kong Monetary Authority has created a stablecoin licencing framework, which came into force from 1 August. The government in the city has a Digital Asset Policy 2.0 initiative, which AMINA said creates “unprecedented opportunities for institutional-grade crypto banking services.”

AMINA – renamed from SEBA Bank in 2023 – was founded in June 2018, and established in Zug, Switzerland; its Swiss, Abu Dhabi and Hong Kong entities have received a range of regulatory licences.