HashKey Capital has locked in a substantial early commitment for its latest crypto investment vehicle, underscoring continued institutional appetite for long-term digital asset exposure even as short-term market liquidity tightens.
The firm announced that it raised $250 million in the first close of its fourth crypto-focused fund, surpassing internal expectations and setting the stage for a significantly larger final raise.
Key takeaways
- HashKey Capital secured $250 million in the first close of its fourth crypto fund.
- The fund is targeting a total size of $500 million.
- Capital commitments came from institutional investors, family offices and high-net-worth individuals.
- The raise comes as short-term crypto liquidity providers retreat from the market.
The new vehicle, called the HashKey Fintech Multi-Strategy Fund IV, is designed to deploy capital across a broad range of blockchain-related opportunities. According to the company, the fund will focus on infrastructure, scalable platforms and applications aimed at mass adoption, with a particular emphasis on emerging markets.
HashKey said investor demand was strong despite a more challenging market environment, noting that long-term capital providers are increasingly stepping in as traders and short-horizon liquidity sources pull back. The firm did not disclose the identities of its backers, but described them as a diverse mix of global institutions, family offices and wealthy private investors.
Deng Chao, chief executive officer of HashKey Capital, said the new fund positions the firm to capitalize on blockchain adoption beyond mature markets. He pointed to emerging economies as key proving grounds for real-world use cases, where blockchain technology is increasingly being applied to payments, financial infrastructure and digital services.
Building on a Growing Institutional Footprint
The latest fund extends HashKey Capital’s role as one of the most active institutional investors in Asia’s crypto ecosystem. Since its founding in 2018, the firm has grown to oversee more than $1 billion in assets and has invested in over 400 projects worldwide. Its inaugural fund has reported a distributed-to-paid-in ratio exceeding 10 times, highlighting the scale of returns achieved during earlier market cycles.
HashKey Capital operates from Singapore, with additional presences in Hong Kong and Japan. It is part of the broader HashKey Group, which has played a central role in shaping Hong Kong’s regulated crypto market. The group was among the first to secure a local crypto exchange license and contributed to the launch of the city’s initial spot Bitcoin and Ether exchange-traded funds.
Momentum around the brand has extended into public markets as well. Last week, HashKey shares began trading on the Hong Kong Stock Exchange following a $206 million initial public offering, with the stock posting gains shortly after listing.
A Market Dividing Along Time Horizons
HashKey’s successful fundraise comes against a backdrop of tightening liquidity across crypto markets. Market research firms have noted that many traders and market makers reduced activity following the October market crash, which triggered the largest liquidation event in the sector’s history.
Data providers have also highlighted sustained outflows from Bitcoin and Ether ETFs in recent weeks, signaling waning participation from short-term institutional allocators. Since early November, rolling net flows into U.S. spot crypto ETFs have turned negative, suggesting that large investors are becoming more selective as volatility persists.
In this environment, HashKey’s raise illustrates a widening gap between short-term trading capital and long-duration investment strategies. While liquidity providers step back, firms with multi-year horizons appear increasingly willing to commit capital, betting that infrastructure and adoption-focused projects will define the next phase of the crypto market cycle.
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Source: https://coindoo.com/hashkey-raises-250m-as-short-term-crypto-liquidity-pulls-back/