Frontier Yield Capital in Hong Kong has announced the distribution of a HKD 240 million dividend for the fiscal year 2025 on April 30th.

By: blockbeats|2025/04/23 11:45:03
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According to official sources, Hong Kong-based Frontier Logic Capital announced a HKD 240 million dividend distribution for the year 2025 on April 30. As the only entity in Hong Kong to have received Securities and Futures Commission approval three times for upgraded asset management permissions (Uplift) as a virtual asset hedge fund management company (BNJ945), the company has distributed dividends 16 times since its establishment in 2018. Mr. Ye Yizhou, CEO of Frontier Logic Capital, stated that this dividend distribution is the final cash dividend for the current year for the fund.

Starting from April 2025, the company's flagship fund will be open for external fundraising for the first time. Frontier Logic Capital is approaching its eighth anniversary and entering its fourth year since formally obtaining the virtual asset license from the Hong Kong Securities and Futures Commission. Mr. Ye mentioned that the company's next phase will focus on collaborating with private banks and other fund distribution channels to offer compliant virtual asset fund products to global investors.

Globally, mainstream asset allocators, such as family offices, university endowment funds, and sovereign wealth funds, primarily allocate virtual assets through two main ways: either by directly purchasing cryptocurrencies like Bitcoin or other mainstream assets in spot transactions or by indirectly holding such assets through ETFs; or by allocating to virtual asset funds.

Across the globe, the availability of virtual asset funds for mainstream investors is scarce, as these funds need to meet three main criteria. Firstly, they must be compliant in major legal jurisdictions, such as obtaining relevant licenses in regions like Hong Kong, Singapore, etc. Taking Hong Kong as an example, the Hong Kong government and related institutions, including the Hong Kong Securities and Futures Commission, are at the forefront globally, having issued nearly 40 virtual asset management licenses and more than 10 virtual asset exchange licenses in the past three years. While apart from Frontier Logic, most other compliant institutions are still exploring their profit models, the Hong Kong government at least provides a framework of choice for mainstream investors;

Secondly, they must demonstrate a sufficiently long, transparent, and traceable track record of performance. For a fund, performance accounts for over 80% of an investor's consideration; and thirdly, the legitimacy and professionalism of the fund management team, as the essence of a virtual asset fund still lies in being a "fund," with a focus on fund structure and the representation of compliance, risk control, strategy, and performance. Only then comes "virtual assets." This is why teams labeled as crypto-native funds find it challenging to be selected, given that the speculative nature, rapid growth, and disregard for rules represented by the crypto gene are contradictory to the emphasis on the "fund." To strike a balance between virtual assets and compliant investment, Frontier Logic Capital spent seven years.

This article is contributed content and does not represent the views of BlockBeats

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