Bitcoin Venture Capital with Huiyin Group
Multi Billion dollar Chinese based investment firm Huiyin Group has launched a subsidiary fund staking $20 million dollars (USD) in Bitcoin. Huiyin Blockchain Ventures (HBV), is a fund focusing solely on Bitcoin investments. The parent company boasts Huiyin Group manages diversified investments in commerce, energy, medicine, agriculture, tourism, electronics, chemicals, and food and beverages. Huiyin Group has more than 20 subsidiaries, assets of over $2 billion.
20 Million Dollar Subsidiary Focuses on BTC Development
James Wo is the son of Huiyin Group founder and will be heading up this subsidiary. Wo states that he believes in the future of Bitcoin. Huiyin Blockchain Venture will have the luxury of being backed by it’s parent company, a large cap institutional conglomerate. Launching with $20m in capital, HBV will now seek to invest the funds over the course of the next six to 12 months. It’s stated purpose is further improving the blockchain ecosystem through investments in infrastructural projects related to the cryptocurrency.
Institutional Research & Development Continues toward Cryptocoin Tech
It is exciting how Bitcoin continues to gather the attention of institutions that have the ability to generate buzz, move markets, pour research & development money, and raw human talent into the crypto coin space. This kind of attention has the potential to accelerate the technology of crypto coin that will lead to a stability and longevity, we hope.
Institutional and Retail Entities Investing Strategies are World’s Apart
On the flip side one must understand that the capabilities of an institutional entity are vastly different than that of a retail investor. Following the trades of an institutional investor as a retail individual can be a recipe for disaster if one is not informed enough. Simply put, an institution has more resources at it’s disposal that allows it to bear risk that a retail investor could not afford. If Bitcoin and/or associated services surrounding it were to be valuated at many multiples from today this particular funds subsidiary hits the jackpot and then some. Conversely if everything falters and the funds 20 million USD is wiped out sure it would be a thorn in the side for the parent company however their total operations will recover that loss. A retail investor attempting following the same strategy of longing Bitcoin and going all in could find themselves with an unrecoupable loss should the trade turn against them. The bottom line is that this strategy could be suited for one group and not for another.
Foreign Institutional Blockchain/Bitcoin Investment Funds
China has shown to take up a lot of the limelight surrounding the bitcoin space with some of the biggest exchanges, miners and equipment hailing from that region. It does maintain a fairly large economic and manufacturing output, so it would stand to reason that a good portion of activity in this space would stem from there.
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