Hong Kong’s VMS Group Makes First Crypto Investment with Re7 Capital

Highlights:

• VMS Group has invested in a crypto hedge fund, Re7 Capital, up to $10 million.
• The firm seeks more liquid assets amid rising institutional interest.
• Hong Kong regulation is boosting digital asset adoption and partnerships.

VMS Group, a Hong Kong-based multifamily office with nearly $4 billion under management, is making their first entry into the crypto market. According to a recent report by Bloomberg, the company will invest up to $10 million in Re7 Capital, a decentralized finance hedge fund. This represents a change to its long-established orientation to long-duration private equity.

Established almost twenty years ago, VMS Group has established a portfolio of companies focusing on areas such as real estate, internet technology, and pharmaceuticals. Currently, the company perceives the opportunity in increasing liquidity and regulatory opportunities in the digital assets domain.

A money manager to some of Hong Kong’s richest individuals will start investing in crypto, as more favorable regulations attract a wider array of investors to the digital-asset sector https://t.co/mp0t2pJ1o1

— Bloomberg (@business) June 23, 2025

Focus on Liquid Strategies and Risk-Managed Returns

As compared to direct exposure to tokens such as Bitcoin, VMS Group chose a market-neutral approach with Re7. This strategy works by providing liquidity on exchanges and lending out stablecoins to earn returns. At the same time, it uses hedging methods to keep price swings in check and reduce risk.

The shift comes under a wider strategy of diversification into more liquid investments. Liquidity in the last several years has decreased in private markets with declining exits and prolonged holding. By allocating to crypto hedge funds, VMS aims to capture faster returns with shorter locking times in comparison to traditional private equity. Re7 Capital has racked up repeated double-digit returns since its inception in 2021. The strategy fits the existing need in the industry among institutions that seek to obtain a stable yield without being fully exposed to the volatility of crypto prices.

Crypto Integration Expands Beyond Investment

In addition, VMS Group is not only interested in crypto as an investment product. The company is also pursuing digital assets-based infrastructure and payment solutions actively. A major project is a real estate venture in Vietnam that is powered by crypto payments, where VMS has a majority share.

Furthermore, to be successful in spearheading these moves, the firm hired Zhi Li in London to work on digital asset infrastructure. His duty lies in finding opportunities to integrate blockchain technology and real-world applications in the area. The transition by the firm into crypto aligns with the growing popularity of wealthy families looking into regulated digital asset exposure. This trend is especially high among younger generations seeking to diversify beyond conventional portfolios.

Hong Kong’s Favorable Environment Spurs Adoption

VMS Group’s move to enter crypto follows Hong Kong’s embrace of progressive digital asset regulations. On June 4, the regulators permitted professional investors to conduct crypto derivatives. In May, lawmakers introduced a bill that allowed stablecoins backed by fiat to be issued at the end of the year.

These trends are in tandem with the wider global trends. Institutions are welcoming crypto in the context of a better legal climate. Hong Kong is currently branding itself as one of the centers of regulated crypto innovation. Consequently, this attracts local and international players in the industry. Additionally, the global macro trends have reawakened interest in the crypto markets. Following a political shift in the U.S., digital assets saw renewed investor confidence. This environment, paired with new offerings like Circle’s IPO, is reinforcing institutional trust.