HashKey Capital has secured $250 million in commitments at the first close of its fourth crypto-focused fund, citing strong institutional interest despite evolving market conditions.
The fund, titled HashKey Fintech Multi-Strategy Fund IV, surpassed initial fundraising expectations at its first close and is targeting a final size of $500 million, according to a company statement released Wednesday.
While HashKey did not disclose the identities of its backers, it said the capital was raised from a diverse group of global institutional investors, family offices, and high-net-worth individuals.
The fundraising milestone comes as short-term liquidity providers reduce exposure to crypto markets, leaving long-term institutional capital to drive investment activity. HashKey Capital said Fund IV will adopt a multi-strategy investment approach, focusing on blockchain infrastructure, scalable platforms, and use cases aimed at mass adoption.
“With $250 million in new capital, we are uniquely positioned to capture the rapid growth emerging across developing markets,” said Deng Chao, CEO of HashKey Capital. “These regions are proving to be the real testing grounds for blockchain’s real-world applications, and Fund IV will provide the capital needed to scale those innovations globally.”
Expanding Crypto Commitments
The new fund builds on HashKey Capital’s position as one of Asia’s most active institutional crypto investors. Founded in 2018, the firm now manages more than $1 billion in assets and has invested in over 400 blockchain projects worldwide. Its inaugural fund has reported a distributed-to-paid-in (DPI) ratio exceeding 10x.
Headquartered in Singapore with operations in Hong Kong and Japan, HashKey Capital serves as the investment arm of Hong Kong-based HashKey Group. The broader group was among the first to secure a crypto exchange license in Hong Kong and played a key role in launching the city’s first spot Bitcoin and Ether exchange-traded funds.
Last week, HashKey also marked its trading debut on the Stock Exchange of Hong Kong following a $206 million initial public offering.
Crypto Market Makers Pull Back
Crypto market makers and traders have reduced their activity following the Oct. 10 market crash, according to a Tuesday post on X by 10x Research. The firm described the event as the largest liquidation episode in crypto market history, noting that many participants have since stepped to the sidelines.
Blockchain analytics firm Glassnode echoed this view, pointing to ongoing outflows from Bitcoin and Ether exchange-traded funds as evidence of declining institutional involvement.
Since early November, the 30-day moving average of net flows into U.S. spot Bitcoin and Ether ETFs has turned negative. This shift suggests that large investors are retreating from the market as overall liquidity continues to tighten.
