HashKey Capital Raises $250M in First Close of Crypto Fund IV
HashKey Capital has secured $250 million in commitments at the first close of its fourth cryptocurrency-focused fund, citing continued institutional interest despite shifting market conditions.
The vehicle, named “HashKey Fintech Multi-Strategy Fund IV,” exceeded initial expectations at first close and is targeting a final size of $500 million, the company said in a news release on Wednesday. Investor identities were not disclosed, with commitments described as coming from a mix of global institutional investors, family offices and high-net-worth individuals.
The raise follows a pullback by short-term liquidity providers in digital-asset markets, with institutions expressing confidence through longer-term capital. HashKey Capital said the fund will deploy a multi-strategy approach focused on infrastructures and scalable, mass-adoption use cases.
Deng Chao, CEO of HashKey Capital, said the additional $250 million positions the firm to capture growth in emerging markets, which he characterized as key testing grounds for practical blockchain applications, and that Fund IV aims to help scale those innovations globally.
HashKey expands crypto investment footprint
The new fund builds on the firm’s record as one of the more active institutional investors in Asia’s crypto sector. Since its launch in 2018, HashKey Capital has grown to manage more than $1 billion in assets and has invested in over 400 projects worldwide. Its first fund has achieved a distributed-to-paid-in ratio of more than 10x.
Headquartered in Singapore with operations in Hong Kong and Japan, HashKey Capital is the investment arm of Hong Kong-based HashKey, which was among the first in the city to obtain a crypto exchange license. The group also helped launch Hong Kong’s first spot Bitcoin (BTC) and Ether (ETH) exchange-traded funds.
Last week, HashKey made its trading debut on the Stock Exchange of Hong Kong (HKEX) following a $206 million initial public offering.
HashKey shares are up 4% today. Source: Google Finance
Market makers pull back
In a Tuesday post on X, 10x Research said that many traders and market makers have stepped back since the Oct. 10 market sell-off, described as the largest liquidation event in crypto’s history.
Glassnode reported that continued outflows from Bitcoin and Ether ETFs indicate reduced institutional participation. Since early November, the 30-day moving average of net flows into U.S. spot Bitcoin and Ether ETFs has turned negative, suggesting large investors are retreating as overall market liquidity tightens.
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