HashKey Capital secured $250 million in commitments at the first close of its fourth cryptocurrency-focused fund, despite “significant interest” from institutional investors despite changing market conditions.
The fund, known as “HashKey Fintech Multi-Strategy Fund IV,” exceeded initial expectations at first close and has an ultimate goal of reaching $500 million, the company says he said in a Wednesday press release.
HashKey did not identify its investors but said commitments came from global institutional investors, family offices and high-net-worth individuals.
The shutdown occurs when short-term liquidity providers withdraw from cryptocurrency markets, leaving it to institutions to express their belief through long-term capital. HashKey Capital said the fund will employ a multi-strategy approach to investing in “infrastructure, scalable and mass applications.”
“With $250 million in new capital, we are uniquely positioned to capture the tremendous growth occurring in emerging markets. These regions are a true testing ground for real-world blockchain applications, and Fund IV will provide the necessary fuel to scale these innovations globally,” said Deng Chao, CEO of HashKey Capital.
Related: How HashKey Plans to Become Hong Kong’s First Cryptocurrency IPO
HashKey doubles your bets on cryptocurrency bets
The latest fund builds on the investment company’s experience as one of the most lively institutional investors in the Asian crypto scene. Since its founding in 2018, the company has grown to manage over $1 billion in assets and has invested in over 400 projects around the world. The first fund achieved a payout-to-payout ratio of over 10 times.
HashKey Capital is headquartered in Singapore with branches in Hong Kong and Japan. This is the investment arm of HashKey from Hong Kong, which was one of the first in the city to obtain a cryptocurrency exchange license. He also played a role in launching the city’s first Bitcoin (BTC) and Ether (ETH) exchange-traded fund (ETF).
Last week, HashKey debuted on the Hong Kong Stock Exchange (HKEX) after a $206 million initial public offering.
Cointelegraph reached out to HashKey for comment but did not receive a response via publication.
Related: HashKey cryptocurrency exchange opens IPO subscription in Hong Kong, target: USD 215 million
Cryptocurrency market creators are retreating
On Tuesday post10x Research has shown that many traders and market makers have “pulled back” since the October 10 market crash, which was the largest liquidation event in the history of cryptocurrency.
Glassnode also said that continued outflows from Bitcoin and Ether ETFs indicate constrained institutional participation in the cryptocurrency market.
Since early November, the 30-day moving average of net inflows into U.S. Bitcoin and Ether cash ETF funds has turned negative, suggesting gigantic investors are withdrawing as overall market liquidity wanes.
Warehouse: 2026 is the year of pragmatic privacy in cryptocurrencies – Canton, Zcash and more
