Huobi Founder to Launch $1B Ethereum Asset Firm

Huobi founder Li Lin plans to establish a $1 billion Ethereum treasury asset management firm, as reported by Bloomberg on October 17, 2025.

The move could increase Ethereum’s institutional holdings, impacting market liquidity and price through enhanced treasury and ecosystem investment strategies.

$1 Billion Ethereum Investment Initiative Backed by Avenir Capital

Li Lin plans to establish a $1 billion Ethereum treasury asset management firm, with Avenir Capital contributing $200 million and Asian institutions committing $500 million. The move aims to bolster investments in the ETH ecosystem.

The initiative’s launch is expected to see increased institutional ETH holdings, potentially affecting its price dynamics. The company seeks to acquire a Nasdaq-listed shell, indicating a focus on compliance. Li Lin stated, “By leveraging a Nasdaq shell company, we aim to ensure compliance and tap into the U.S. market effectively.”

Initial market sentiment appears positive, with crypto Twitter abuzz over institutional support for Ethereum. Whale Insider shared the news stating, “JUST IN: Huobi founder Li Lin to launch $1,000,000,000 firm to manage and expand $ETH focused treasury.”

Market Impact and Regulatory Insights on Ethereum’s Growth

Did you know? Ethereum has not yet seen a public company become a dominant treasury holder. Initiatives like this could resemble MicroStrategy’s Bitcoin strategy, indicating potential price and ecosystem impacts.

According to CoinMarketCap, Ethereum (ETH) holds a market cap of $469.23 billion with a 24-hour trading volume of $27.38 billion, indicating a -54.45% shift. Ethereum’s price presently stands at $3,887.64, showing a 1.38% rise over the past 24 hours.

Experts from Coincu note potential regulatory advantages with the Nasdaq acquisition, enhancing market credibility. This could spur broader institutional participation in Ethereum, impacting financial strategies within the ecosystem.