HashKey Capital secured $250 million in commitments in the first close of its fourth crypto-focused fund amid “significant interest” from institutional investors despite shifting market conditions.
The fund, known as “HashKey Fintech Multi-Strategy Fund IV,” exceeded initial expectations at its first close and is targeting a final size of $500 million, the company said in a news release on Wednesday.
HashKey did not identify its investors, but said the commitments came from a mix of global institutional investors, family offices and high-net-worth individuals.
The close comes as short-term liquidity providers pull back from crypto markets, leaving institutions to express conviction through long-term capital. HashKey Capital said the fund will pursue a multi-strategy approach to investing in “infrastructures, scalable and mass adoption use cases.”
“With $250 million in new capital, we are uniquely positioned to capture the massive growth occurring in emerging markets. These regions are the true testing grounds for blockchain’s real world applications, and Fund IV will provide the essential fuel to scale those innovations globally,” said Deng Chao, CEO of HashKey Capital.
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HashKey doubles down on crypto bets
The latest fund builds on the investment company’s track record as one of the most active institutional investors in Asia’s crypto scene. Since launching in 2018, it has grown to manage more than $1 billion in assets and has invested in more than 400 projects globally. Its first fund has achieved a distributed-to-paid-in ratio of more than 10x.
HashKey Capital is headquartered in Singapore, with operations in Hong Kong and Japan. It is the investment arm of Hong Kong-based HashKey, which was among the first in the city to obtain a crypto exchange license. It also played a role in launching the city’s first spot Bitcoin (BTC) and Ether (ETH) exchange-traded funds (ETFs).
Last week, HashKey made its trading debut on the Stock Exchange of Hong Kong (HKEX) following a $206 million initial public offering.
Cointelegraph reached out to HashKey for comment, but did not receive a response by publication.
Related: HashKey crypto exchange opens Hong Kong IPO subscription, targets $215M
Crypto market makers step back
In a Tuesday X post, 10x Research revealed that many traders and market makers “have stepped back” since the Oct. 10 market crash, which was the largest liquidation event in the crypto’s history.
Glassnode also said that the continued outflows from Bitcoin and Ether ETFs point to reduced institutional participation in the crypto market.
Since early November, the 30-day moving average of net flows into US spot Bitcoin and Ether ETFs has turned negative, suggesting that large investors are stepping back as overall market liquidity tightens.
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