HashKey Capital Raises $250M as Institutions Take Long View on Crypto

HashKey Capital secured $250 million in commitments in the first close of its fourth crypto focused fund, according to a company release on Wednesday. The fund, called HashKey Fintech Multi Strategy Fund IV, passed early targets and is aiming for a final size of $500 million.

The firm did not name investors but said the capital came from global institutions, family offices, and high net worth individuals. The timing stands out. Short term liquidity players have pulled back from crypto markets in recent months, leaving fewer active traders and market makers.

With fast money stepping aside, capital entering the market now is longer term by design. HashKey confirmed the fund will deploy capital across multiple strategies, with a focus on blockchain infrastructure and large scale use cases.

HashKey Capital said Fund IV will invest in projects tied to real world blockchain use. The firm plans to focus on markets where adoption is still forming and user growth is faster than in developed regions.

Chief executive Deng Chao said the new capital will be used to support growth in emerging markets, which the firm views as key testing areas for blockchain based services. The fund is structured to stay active across market cycles rather than trade short price swings.

This approach fits current conditions. Liquidity across major tokens has tightened since October, and large spot trades now move price more than earlier in the year. Capital locked into funds removes supply from the open market and signals conviction beyond short term price moves.

HashKey Capital Expands After IPO

HashKey Capital launched in 2018 and now manages over $1B in assets. The firm has invested in more than 400 projects worldwide. 

The firm is based in Singapore, with operations in Hong Kong and Japan. It is part of the wider HashKey group, which operates a licensed crypto exchange in Hong Kong. The group also supported the launch of the city’s first spot Bitcoin and Ether exchange traded funds.

Last week, HashKey listed on the Hong Kong Exchange after raising $206 million through anIPO. The listing gives the group access to public market capital while private funds continue to expand.

Market Remains Cautious

Market data shows reduced activity from large traders. According to 10x Research, many traders and market makers pulled back after the October 10 crash, the largest liquidation event in crypto history.

Glassnode data shows continued outflows from Bitcoin and Ether ETFs. Since early November, the 30 day average of net ETF flows has turned negative. This points to weaker near term demand and tighter liquidity.