Metalpha Technology Holding Ltd (MATH)

[Nextbigone]

$MATH Crypto wealth manager Metalpha picks up stake in NextGen

Hong Kong-based crypto wealth management firm Metalpha Technology has invested in NextGen Digital Venture.

The investment strengthens an existing partnership that offers institutional investors compliant investment channels for exposure to digital assets.

The new investment enables Metalpha to provide NextGen Digital Venture with additional management support, said Metalpha in a statement on Monday.

The deal is built on an existing partnership between the two companies that saw them jointly launch the Next Generation Fund I, or the ‘NextGen Fund I’, in April 2023 to focus on the suite of products offered by the US digital currency asset manager Grayscale Investments. 

Metalpha, through its wholly-owned subsidiary LSQ Capital, serves as the sub-investment manager of NextGen Fund I and plays a key role in the fund operations and decision-making.

The move to invest in NextGen Digital Venture makes Metalpha a shareholder of the firm, Metalpha confirmed to DealStreetAsia in an email, but it declined to disclose the financial details of the investment.

NextGen Digital Venture, which offers crypto-related investment services to traditional investors, was founded in 2023 by Jason Huang, who previously held positions at Blue Pool Capital, the family office of Alibaba Group co-founder Joseph Tsai, as well as venture capital (VC) firms Joy Capital and Qiming Venture Partners.

The NextGen Fund I invests both directly and indirectly through structured derivatives into Grayscale’s investment products. The vehicle had a target of raising $100 million, Metalpha’s president Adrian Wang told DealStreetAsia in April 2023.