Digital assets financial services firm HashKey Capital's Hong Kong-regulated fund will invest a significant chunk of its assets in altcoins, Reuters reported on Friday.

Less than half of the fund's investments will be in bitcoin (BTC) and ether (ETH), the two largest cryptocurrencies, so it can diversify allocations to smaller cap assets, portfolio manager Jupiter Zheng said, according to the report.

"Altcoin" is a broad term applied to cryptocurrencies other than bitcoin, which accounts for around half the total market cap of all cryptocurrency.

The fund, which opened for business Friday, has attracted high-net-worth individuals and investment firms serving rich Asian families as clients, Zheng told the news service.

Singapore-based HashKey Capital unveiled the fund a month ago, for which it aims to raise $100 million to invest entirely in digital assets. This followed Hong Kong reemerging as a global crypto hub following the creation of a digital asset regulatory framework in the administrative region.

HashKey did not immediately respond to CoinDesk's request for further comment.

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