VMS Group to Invest in Crypto, Managing $4B in Assets

Hong Kong-based VMS Group, a multi‑family office managing approximately US $4 billion in assets, is making its inaugural foray into the cryptocurrency space.

Overview

On June 24 2025, Bloomberg revealed that  VMS plans to allocate up to US $10 million to strategies run by Re7 Capital, a London-based decentralised finance (DeFi) hedge fund. VMS managing partner Elton Cheung told Bloomberg that the decision stems from a deliberate effort to diversify beyond private equity and other long-term, less-liquid investments.

“It is harder for the firm to exit from such investments, as more and more companies are opting to stay private for longer periods,”

Cheung commented. By contrast, digital asset strategies typically offer greater liquidity and frequent opportunities to adjust or rebalance exposures.

Cheung added that the move is backed by growing client demand and a shifting regulatory landscape. “

We thought this was the right time because of growing demand and because we see clearer legislative and government support from various jurisdictions, as well as large institutional support and endorsement,”

he noted.

Why Re7 — Market-Neutral DeFi Strategy Preferred

VMS is opting for an indirect route into the crypto domain by entrusting Re7 Capital rather than purchasing digital tokens outright. Re7 specialises in market-neutral DeFi strategies, generating yields through liquidity provisioning on decentralised exchanges and stablecoin lending while employing hedging tools to limit exposure to price volatility.

Evgeny Gokhberg, Re7’s founder, emphasised that professional investors are primarily interested in measured, reliable returns rather than high-risk speculation. As he told Bloomberg,

“Typically, people think about asymmetry in crypto as ‘lose it all or make a 100x.’ That’s rarely fit for a serious allocator with a reputation to lose”

. Re7 has purportedly delivered consistent double-digit returns since its establishment in 2021 using proprietary analytics and real-time risk monitoring, though it has not disclosed exact performance metrics.

This approach aligns with VMS’s objective: exposure to emerging returns in the crypto world, but within controlled risk parameters. By relying on a market-neutral fund, the firm avoids the headline-grabbing volatility associated with direct token holdings, such as Bitcoin (BTC) or Ethereum (ETH).

Broader Vision: From Compliance to Infrastructure

VMS’s venture into crypto is more than a tactical investment—it reflects a systemic shift in mindset. Historically concentrating on sectors like real estate, pharmaceuticals, internet businesses, and AI, the firm is now embracing broader digital asset integration. In 2023, VMS collaborated with a former SenseTime executive to explore early-stage AI investments, signalling a willingness to engage with cutting-edge tech. 

Now, with Zhi Li heading digital asset investments from the London office since late 2023, the group is evaluating crypto use cases, including on‑chain payments and blockchain infrastructure. One practical prospect under review is integrating crypto-based payment mechanisms into a real estate project in Vietnam, where VMS holds a majority stake. Li explained that younger generations within affluent families are explicitly seeking regulated digital asset exposure.

“There is strong institutional and family interest in getting regulated digital asset exposure. We have seen the younger generation of families wanting to do something different,”

he noted. 

This adoption coincides with improved regulatory clarity, especially in Hong Kong, which recently authorised professional investors to trade crypto derivatives and passed legislation allowing fiat-backed stablecoins to be issued by year-end. This evolution is emblematic of a larger trend: once cautious, traditional wealth managers and family offices are now increasingly integrating digital assets into their core strategies—both through structured investment products and practical infrastructural applications.

VMS Group’s move to commit up to US $10 million to a DeFi-focused fund marks a measured, institutionally-aware entry into crypto. It underscores their strategy to manage liquidity, client demand, and reputational risk by selecting structured, hedged exposure over direct, volatile token investments. Further, their exploration of blockchain applications in tangible assets signals a long-term view of integrating digital finance into core business operations.

As regulatory frameworks solidify and generational next-of-kin gain influence, VMS’s pivot could serve as a bellwether for how more conservative, legacy-focused financial institutions will approach the crypto space in the years ahead.