HashKey Secures $250M for Crypto Fund Amid Institutional Bullishness

HashKey Capital has completed the first round of fundraising for its HashKey Fintech Multi-Strategy Fund IV, securing $250 million in committed capital from a mix of institutional investors, family offices, and high-net-worth individuals. The fund, which aims for a total of $500 million in assets under management (AUM), will focus on blockchain infrastructure and scalable applications with real-world use cases. This development underscores continued institutional interest in crypto investments despite ongoing market volatility.

The firm, based in Singapore and operating in Hong Kong and Japan, has expanded its AUM to over $1 billion since 2018, making it one of Asia's leading digital asset fund managers. HashKey Capital has a history of backing major crypto projects, including Ethereum, and has previously launched the region's first spot Bitcoin and Ether ETFs. The fourth fund is designed to provide institutional-grade exposure across the blockchain ecosystem's infrastructure and application layers.

Deng Chao, CEO of HashKey Capital, highlighted the firm's strategic positioning to capitalize on blockchain growth in emerging markets, where real-world applications are being tested at scale. Dr. Xiao Feng, founder of HashKey Group, added that the convergence of artificial intelligence, blockchain, and institutional finance is generating new opportunities for investment. The firm's latest fund comes amid a broader trend of crypto and fintech innovation gaining traction in Asia and beyond.

Institutional Confidence in Blockchain

Despite recent market challenges such as tighter liquidity and ETF outflows, the $250 million first close signals strong institutional backing for blockchain investments. This is notable in a market where short-term liquidity providers have pulled back following major events like the October liquidation. HashKey's fourth fund is one of the few that continues to attract committed capital, reflecting the long-term confidence of global investors.

The firm's multi-strategy approach includes both public and private market investments, focusing on blockchain infrastructure and scalable platforms. This strategy aims to support projects with potential for broad adoption and real-world utility. HashKey Capital's track record also adds credibility to its latest efforts; its first fund achieved a distributed-to-paid-in ratio of over 10x, showcasing strong historical performance.

The timing of this raise also coincides with HashKey Group's recent trading debut on the Hong Kong Stock Exchange (HKEX) following a $206 million initial public offering. This milestone has further solidified the firm's presence in the region and highlighted its role in advancing regulated digital asset products.