- The fund targets blockchain infrastructure and scalable use cases, with a particular focus on emerging markets.
- Market makers have scaled back activity since the October 10 crash, while ETF flows point to lower institutional trading participation.
- This rise follows HashKey’s $206 million IPO on the Hong Kong Stock Exchange.
Institutional capital appears to be positioning for the long term in crypto markets as short-term liquidity thins.
That shift is reflected in the first close of a new fund from HashKey Capital, which secured $250 million in commitments despite a more turbulent trading environment.
The fundraising underscores how large investors are repositioning after a volatile stretch marked by heavy liquidations, ETF outflows and the pullback of market makers.
Rather than chasing short-term price moves, more capital is being directed toward infrastructure, financial technology and real-world blockchain applications with durable long-term potential.
Fund strategy and scale
HashKey Capital said that its fourth crypto-focused vehicle, HashKey Fintech Multi-Strategy Fund IV, exceeded expectations at its first close and is targeting a $500 million final close.
The fund is structured to allocate capital across multiple strategies, with emphasis on core infrastructure and scalable use cases designed for broad adoption.
According to the firm, emerging markets are expected to play a central role, as these regions increasingly serve as testing grounds for blockchain-based financial services and applications.
Institutional conviction in defensive mode
The timing of the close is notable. Crypto markets adjusted after a sharp drop in early October, when a major liquidation event prompted a wide deleveraging.
In a post on X, 10x Research noted that many traders and market makers reduced activity after the October 10 crash, contributing to thinner liquidity.
Since the start of November, the 30-day moving average of net flows into U.S. spot Bitcoin and Ether ETFs has turned negative, suggesting capital is being reallocated or held on the sidelines as conditions firm up.
Track record and expansion
Fund IV builds on HashKey Capital’s established presence in Asia’s digital asset sector.
Since its 2018 launch, the firm has grown to manage more than $1 billion in assets and has invested in over 400 projects globally.
Its first fund delivered a distributed-paid ratio exceeding 10x, highlighting the scale of returns achieved in earlier cycles.
The firm is headquartered in Singapore, with operations in Hong Kong and Japan.
It is part of the broader HashKey group, which was among the first in Hong Kong to obtain a crypto exchange license.
The group also played a role in launching the city’s initial spot Bitcoin and Ether ETFs, further extending its regulatory and market footprint.
The fundraising follows HashKey’s recent public listing.
Last week the company made its Hong Kong Stock Exchange debut after a $206 million initial public offering.
The listing adds another layer of visibility at a time when scrutiny of crypto firms remains high and access to traditional capital markets has become more selective.