Institutional capital is taking a longer view of crypto markets as short-term liquidity thins out.

That shift is reflected in the first close of a new fund by HashKey Capital, which has secured $250 million in commitments despite choppier trading conditions.

The rise highlights how large investors are repositioning after a volatile period marked by heavy liquidations, ETF outflows, and retreating market makers.

Rather than chasing near-term price moves, capital is increasingly being directed toward infrastructure, financial technology, and real-world blockchain applications with longer-run potential.

Fund strategy and scale

HashKey Capital said its fourth crypto-focused vehicle, the HashKey Fintech Multi-Strategy Fund IV, exceeded expectations at its first close and is targeting a final size of $500 million.

The fund is designed to deploy capital across multiple strategies, with a focus on core infrastructure and scalable use cases aimed at broader adoption.

According to the firm, emerging markets are expected to play a central role, as these regions are increasingly acting as testing grounds for blockchain-based financial services and applications.

Institutional conviction on the back foot

The timing of the close is notable. Crypto markets have been adjusting after a sharp sell-off earlier in October, when a major liquidation event triggered widespread deleveraging.

In a Tuesday post on X, 10x Research said many traders and market makers had reduced activity following the Oct. 10 crash, contributing to thinner liquidity.

Since early November, the 30-day moving average of net flows into US spot Bitcoin and Ether ETFs has turned negative, suggesting that capital is being redeployed or held on the sidelines as conditions tighten.

Track record and expansion

Fund IV builds on HashKey Capital’s established presence in Asia’s digital asset sector.

Since launching in 2018, the firm has grown to manage more than $1 billion in assets and has invested in over 400 projects globally.

Its first fund recorded a distributed-to-paid-in ratio of more than 10x, underlining the scale of returns achieved in earlier cycles.

The firm is headquartered in Singapore and operates across Hong Kong and Japan.

It is part of the broader HashKey Group, which was among the first in Hong Kong to secure a crypto exchange licence.

The group has also been involved in launching the city’s first spot Bitcoin and Ether ETFs, adding to its regulatory and market footprint.

The fundraise comes shortly after HashKey’s entry into public markets.

Last week, the company made its trading debut on the Stock Exchange of Hong Kong following 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 is becoming more selective.

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HashKey raises $250M for new crypto fund on strong investor demand

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Hong Kong’s push to position itself as a global hub for regulated digital assets took a visible step forward this week as HashKey, the city’s largest cryptocurrency exchange, began trading on the Stock Exchange of Hong Kong.

The debut followed a $206 million initial public offering that drew strong demand across retail and institutional channels.

While early trading was volatile, the listing placed HashKey at the centre of a growing wave of crypto firms seeking public market exposure in Asia and beyond.

The move also underlined Hong Kong’s ambition to blend capital markets depth with tighter digital asset oversight, at a time when global regulators are taking a more cautious stance on crypto activity.

Shares of HashKey Holdings listed on the HKEX main board on Wednesday, opening at 6.70 Hong Kong dollars, or about $0.86, according to exchange data.

The company confirmed in a blog post that the listing made it the first digital asset company in Asia to go public via an IPO in Hong Kong, setting a regional precedent for crypto firms pursuing traditional capital market routes.

Hong Kong listing milestone

HashKey’s IPO was launched on Dec. 9 and involved the sale of 240 million shares, raising a total of $206 million, based on its HKEX filings.

The structure reflected a split between local and international tranches, aligning with Hong Kong’s standard IPO framework while attracting a broad investor base.

The Hong Kong public offering component saw demand surge well beyond expectations. The retail tranche was oversubscribed by nearly 394 times, with 24 million shares allocated.

The international offering also drew solid interest, reaching 5.5 times subscription and accounting for 216.5 million shares sold.

The response highlighted continued appetite for crypto-linked equities despite recent market volatility in the sector.

Investor demand and structure

Nine cornerstone investors participated in the IPO, adding a layer of institutional credibility to the transaction.

These included Cithara Global Multi-Strategy SPC, UBS AM Singapore, Fidelity, and CDH.

Among them, Cithara and UBS emerged as the largest backers, receiving allocations of roughly 17.5 million shares and 11.7 million shares, respectively.

The presence of established asset managers suggested confidence in HashKey’s business model and regulatory positioning.

It also reflected investor interest in companies operating within Hong Kong’s licensing regime, which has been promoted as a framework for compliant digital asset trading and custody.

Volatile first trading session

Despite the strong fundraising outcome, HashKey’s first day of trading was marked by price swings.

During the morning session, shares briefly climbed about 5% above the opening price, reaching roughly $0.91, before reversing course and dropping to a low near $0.78.

By the afternoon, the stock was trading slightly below its IPO price, at around $0.84.

The movement underscored the cautious tone among investors toward newly listed crypto firms, even as demand for IPO allocations remained robust.

Market participants appeared to weigh long-term growth prospects against near-term uncertainties in the global digital asset market.

The post HashKey IPO marks milestone for Hong Kong’s regulated crypto market appeared first on CoinJournal.

HashKey IPO marks milestone for Hong Kong’s regulated crypto market

Source: https://coinjournal.net/news/hashkey-ipo-marks-milestone-for-hong-kongs-regulated-crypto-market/