HashKey Secures $250M for New Crypto Fund Amid Strong Interest

HashKey Capital has garnered $250 million in commitments for its fourth cryptocurrency-focused fund, the “HashKey Fintech Multi-Strategy Fund IV.” This achievement comes amid considerable interest from institutional investors despite ongoing fluctuations in the market. The firm aims to reach a final fund size of $500 million and intends to invest in various blockchain infrastructures and applications.

Key Takeaways

HashKey Capital raised $250 million for its new crypto fund from numerous global investors.
The fund aims to build on HashKey's significant presence in the Asian crypto market.
HashKey Capital plans a multi-strategy investment approach targeting scalable blockchain applications.
The crypto market is currently experiencing reduced liquidity, influencing institutional investment strategies.

HashKey secures $250M for new crypto fund amid ‘significant interest’

HashKey's Investment Strategy

HashKey Capital has successfully secured $250 million in commitments during the initial close of its fourth crypto-focused fund, indicating a “significant interest” from institutional investors, even as market conditions continue to shift. This fund, named the “HashKey Fintech Multi-Strategy Fund IV,” exceeded initial projections and is aimed at ultimately reaching a total of $500 million, as stated in a news release on Wednesday.

While the specific identities of the investors were not disclosed, HashKey mentioned that the commitments consist of a diverse mix of global institutional investors, family offices, and wealthy individuals. This fundraising occurs as short-term liquidity providers withdraw from the cryptocurrency markets, prompting institutions to invest with a long-term outlook. The fund will adopt a multi-strategy investment approach, focusing on infrastructures and use cases that support scalability and mass adoption.

“With the infusion of $250 million in capital, we are in a prime position to leverage the substantial growth occurring in emerging markets,” said Deng Chao, CEO of HashKey Capital. “These regions serve as crucial testing grounds for real-world blockchain applications, and Fund IV will be pivotal in scaling these innovations globally.”

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HashKey's Growing Influence

The new fund builds on HashKey Capital’s reputation as one of Asia's most active institutional investors in the crypto space. Since its inception in 2018, the firm has expanded its asset management to over $1 billion and made investments in more than 400 projects worldwide. Its first fund has reported a distributed-to-paid-in ratio of over 10x.

Headquartered in Singapore, HashKey also operates in Hong Kong and Japan. It is the investment arm of HashKey, which was among the first entities in Hong Kong to secure a crypto exchange license. HashKey has also contributed to the launch of the city's inaugural spot Bitcoin and Ether exchange-traded funds (ETFs). Just last week, the firm debuted on the Hong Kong Stock Exchange (HKEX) after completing a $206 million initial public offering.

Cryptocurrencies, Hong Kong, Funding, Venture Capital, Cryptocurrency Investment, HashKey
HashKey shares have seen a 4% increase today. Source: Google Finance

Cointelegraph attempted to contact HashKey for further comment but did not receive a response by the time of publication.
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Market Trends: Caution Among Crypto Traders

In a recent post on X, 10x Research indicated that many traders and market makers have “stepped back” following the significant market crash on October 10, which marked the largest liquidation event in crypto history. Data from Glassnode further supports this observation, showing that ongoing outflows from Bitcoin and Ether ETFs indicate reduced institutional engagement in the crypto market.

Since early November, the 30-day moving average of net flows into U.S. spot Bitcoin and Ether ETFs has turned negative, suggesting that larger investors are retreating as overall market liquidity becomes tighter.
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