- The fund focuses on infrastructure and scalable blockchain use cases, with an emphasis on emerging markets.
- Market makers reduced activity after the October 10 crash, while ETF flows indicate lower institutional participation.
- Fundraising picked up following HashKey’s IPO on the Hong Kong Stock Exchange, which raised $206 million.
Institutional capital is approaching crypto markets with a longer-term perspective, mindful of short-term liquidity constraints.
That shift is reflected in the first close of HashKey Capital’s new fund, which secured commitments totaling $250 million despite a more volatile trading environment.
The raise highlights how large investors are repositioning after a volatile period marked by significant liquidations, ETF outflows and the withdrawal of market makers.
Rather than chasing short-term price moves, capital is increasingly directed toward infrastructure, fintech and real blockchain applications with long-term potential.
Fund strategy and scale
HashKey Capital said its fourth crypto-focused vehicle, HashKey Fintech Multi-Strategy Fund IV, exceeded expectations at first close and targets a final size of $500 million.
The fund is structured to allocate capital across multiple strategies, emphasizing core infrastructure and scalable use cases designed to drive wider adoption.
The firm expects emerging markets to play a central role, as these regions increasingly become proving grounds for blockchain-based financial services and applications.
Institutional repositioning amid defense
The timing of the close is notable. Crypto markets have been adjusting since a sharp sell-off in early October, when a large liquidation event substantially reduced leverage.
In a Tuesday post on X, 10x Research reported many traders and market makers reduced activity after the October 10 crash, contributing to lower liquidity.
Since early November, the 30-day moving average of net flows into U.S. spot Bitcoin and Ether ETFs turned negative, signaling that capital is being redirected or held back amid tighter conditions.
History and expansion
Fund IV builds on HashKey Capital’s established presence in Asia’s digital asset sector.
Since its founding in 2018, the firm has grown to manage more than $1 billion in assets and has invested in over 400 projects globally.
The first fund delivered a distributed-to-paid-in multiple of more than 10x, underscoring the magnitude of returns achieved in prior cycles.
Headquartered in Singapore, HashKey operates across Hong Kong and Japan.
It is part of the broader HashKey Group, one of the first in Hong Kong to secure a license for a crypto exchange.
The group also participated in launching the city’s initial spot Bitcoin and Ether ETFs, expanding its regulatory and market influence.
The fundraising was completed shortly after HashKey’s public listing.
Last week the company debuted on the Hong Kong Stock Exchange following an initial public offering that raised $206 million.
The listing adds another layer of visibility at a time when scrutiny of crypto firms remains high and access to traditional capital markets is more selective.