Former HSBC, Citigroup, Merrill Lynch Execs Start $50M Crypto Fund

Banking veterans who have steered divisions at HSBC, Citigroup and Merrill Lynch in the Asia-Pacific region are ditching traditional finance to invest in cryptocurrencies.

• People familiar with the matter told CoinDesk that Joseph Chang, who led equities trading and prime finance at Merrill Lynch, HSBC and Citigroup Asia-Pacific from 1997 to 2016, and Grahame Webb, formerly head of technology for HSBC and Citigroup Asia-Pacific prime finance and securities services, have been trading cryptocurrencies since June through a new Hong Kong-based fund, Liquibit Capital.
• Liquibit Capital, also managed by a former Barclays Capital vice president and two current JPMorgan and Wells Fargo technicians, will manage assets worth $50 million, the people said.
• Liquibit is said to arbitrage a portfolio of bitcoin, bitcoin cash, ether, litecoin and eos, custodied with Fireblocks.
• It is expected to expand to trading derivatives, options and futures on BitMex, Huobi, OkEx and Deribit – cryptocurrency exchanges with a largely Asia-based presence.
• Chang, now Liquibit Capital's chief investment officer, said regulatory bloat and a surplus of middlemen at investment banks convinced him and his partners to switch to cryptocurrency markets.
• Webb, chief technology officer at Liquitbit Capital, has also previously structured custody and clearing architecture for securities flowing between wealth managers.

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