HashKey Raises $250M as Institutions Commit to Crypto Funds

HashKey Capital raises $250M for its fourth crypto fund, signaling strong institutional demand for long-term blockchain investments.

HashKey Capital has just closed a major funding round during a slow market phase. 

The firm raised $250 million for its fourth crypto-focused fund and interest came from institutions, family offices and wealthy individuals. 

The rise shows steady demand for digital assets, even as trading activity has slowed down across markets.

HashKey Capital Fund IV Draws Strong Interest

HashKey Capital confirmed the first close of its new fund this week. The vehicle carries the name HashKey Fintech Multi-Strategy Fund IV, and commitments reached $250 million during this initial phase.

The firm is now aiming for a final size of $500 million and executives said that early demand ended up being higher than expectations. Investors clearly chose long-term capital rather than short-term trading bets.

The firm did not name contributors, but it said that capital came from global institutions, family offices and high-net-worth investors.

Focus Shifts Toward Long-Term Capital

Liquidity across crypto markets tightened as well, with market makers reducing their exposure after the October crash. That event triggered the largest liquidation wave on record.

Glassnode data also shows weaker flows into spot Bitcoin and Ether ETFs. Net flows turned negative on a 30-day average basis and large investors appear cautious in public markets.

HashKey Capital sees this environment as an entry point. The firm prefers long-duration strategies and executives said institutions now express conviction through patient capital.

What the New Fund Plans to Back

HashKey Capital described Fund IV as a multi-strategy product. The fund will target blockchain infrastructure, scaling solutions and mass adoption use cases.

Investments will include early-stage projects and more mature assets. The strategy also allows crossover exposure where traditional finance meets blockchain tools.

Chief executive Deng Chao pointed out emerging markets as a focus area and said these regions test real-world blockchain use faster than developed economies.

The firm expects these markets to drive adoption across payments, finance and digital identity.

A Track Record Built Over Several Cycles

HashKey Capital launched operations in 2018 and has now built one of the largest crypto investment platforms in Asia.

It has Assets under management of more than $1 billion, and the firm has backed more than 400 projects worldwide. Early support included Ethereum during its formative years.

The first HashKey fund achieved a distributed-to-paid-in ratio above 10x and that result likely helped it attract repeat investors.

Institutions Remain Engaged Despite Pullbacks

Crypto sentiment softened in recent months, and price action has disappointed many traders. Trading volumes also fell during the holiday season.

However, institutional demand shows a different pattern as capital commitments continue through private vehicles rather than exchanges.

HashKey Capital’s raise supports that view. Long-term investors appear comfortable deploying funds during quieter periods, and such timing often favours patient strategies. 

Related Reading: HashKey Prepares to Open Investor Orders for December Hong Kong Listing

Market Makers Step Back as Funds Step Forward

10x Research reported that many traders reduced activity after the October liquidation event. However, funds like HashKey fill a different role by providing steady capital rather than daily volume. 

Private funds do not rely on constant trading. Instead, they focus on development cycles and adoption paths. 

This contrast shows a changing investor mix where retail traders are pulling back, and institutions plan several years ahead.

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