HashKey raises $250M for new crypto fund on demand from strong investors
The fund targets infrastructure and scalable blockchain usage with a focus on emerging markets. Market makers have reduced activity since the Oct. 10 crash, while ETF inflows reflect low institutional participation. The increase follows HashKey's $206 million IPO on the Hong Kong Stock Exchange.
As short-term liquidity diminishes, institutional capital is taking a longer view of crypto markets.
That shift was reflected in the first close of HashKey Capital's new fund, which received $250 million in pledges despite better trading conditions.
The increase shows how big investors are positioned after a volatile period marked by heavy liquidity, ETF exits and retreating market makers.
Rather than chasing recent price movements, capital has increasingly gone into infrastructure, financial technology and real-world blockchain applications with the potential to run longer.
Fund strategy and measurement
HashKey Capital said its fourth crypto-focused vehicle, the HashKey Fintech Multi-Strategy Fund IV, has raised initial closes above expectations and a final size target of $500 million.
The fund is designed to deploy capital through a variety of strategies, focusing on use cases focused on core infrastructure and broad adoption.
According to the firm, emerging markets are expected to play a central role as these regions are becoming testing grounds for blockchain-based financial services and applications.
Institutional judgment on the back foot
The closing time is known. Crypto markets are correcting after a massive sell-off in early October when a large liquidity event triggered a wide spread.
On Tuesday at X, 10x Research, many traders and market makers reduced activity after the October 10 crash, which contributed to thin liquidity.
Since early November, the 30-day moving average of net inflows into US spot Bitcoin and Ether ETFs has turned negative, suggesting that capital is being redeployed or held aside as conditions tighten.
Record and monitor expansion
Fund IV builds on HashKey Capital's established presence in the Asian digital asset sector.
In the year Since launching in 2018, the company has grown to manage more than $1 billion in assets and has invested in more than 400 projects globally.
The first fund recorded a dividend-payout ratio of more than 10x, mirroring the returns achieved in previous cycles.
The company is headquartered in Singapore and has operations in Hong Kong and Japan.
It is part of the wider HashKey group, which was among the first to obtain a license for a crypto exchange in Hong Kong.
The group also participated in the launch of City's first Bitcoin and Ether ETF, increasing its regulatory and market footprint.
The fundraising comes shortly after HashKey enters the public markets.
Last week, the company began trading on the Hong Kong Stock Exchange following a $206 million initial public offering.
At a time when scrutiny of crypto companies is high and access to traditional capital markets is becoming more selective, the list adds another layer of visibility.
