Huiyin Group launches $20 million Bitcoin fund, focusing on investing in Bitcoin blockchain

Huiyin Group, a multi-billion dollar Chinese investment firm, has announced the launch of a bitcoin-focused subsidiary, Huiyin Blockchain Ventures (HBV).

HBV has pledged $20 million in funding and is seeking to invest it in the fund over the next 6-12 months. The fund will be managed by James Wo, son of Huiyin Group’s founder, and will focus on improving the blockchain ecosystem by investing in infrastructure projects and new applications.

While the company may have the word “blockchain” in its name, people familiar with the matter said it is unlikely to invest in so-called alternative blockchain businesses or projects.

Wo noted that the fund will have a particular focus on supporting bitcoin blockchain projects.

I said in a statement:

“We are looking to invest in Bitcoin-related companies to help enrich the industry as a whole as we see a great return on investment opportunity. As the Bitcoin industry continues to mature, Bitcoin’s use in China and elsewhere in the world will continue to grow and expand. HBV intends to be at the forefront of this technology as it continues to gain traction around the world.”

The company is reported to have invested in several Bitcoin companies through its fund, including Indian Bitcoin exchange Unocoin , content monetization platform Yours , and Bitcoin e-commerce marketplace Purse.io .

Purse CEO Andrew Lee will serve as an advisor to the fund.

Family Business

HBV's parent fund, Huiyin Group, is a state-owned investment group that focuses on investing in traditional industries such as real estate, energy and agriculture.

But over the past few years, both Wo and his father developed an interest in Bitcoin, which ultimately led to the creation of the new fund.

Speaking about the family, Lee said:

“Among all the Chinese investors I have talked to, their love for Bitcoin is deeper than anyone else, which may be inseparable from China’s economy and politics.”

Lee also hinted that there will be bigger investment announcements revealed in the Bitcoin ecosystem in the coming months.