• The fund targets infrastructure and scalable blockchain use cases, with a focus on emerging markets.
• Market makers have reduced activity since the Oct. 10 crash, while ETF flows signal lower institutional participation.
• The raise follows HashKey’s $206 million IPO on the Hong Kong stock exchange.

Institutional capital is taking a longer view of crypto markets as short-term liquidity thins out.

That shift is reflected in the first close of a new fund by HashKey Capital, which has secured $250 million in commitments despite choppier trading conditions.

The rise highlights how large investors are repositioning after a volatile period marked by heavy liquidations, ETF outflows, and retreating market makers.

Rather than chasing near-term price moves, capital is increasingly being directed toward infrastructure, financial technology, and real-world blockchain applications with longer-run potential.

Fund strategy and scale

HashKey Capital said its fourth crypto-focused vehicle, the HashKey Fintech Multi-Strategy Fund IV, exceeded expectations at its first close and is targeting a final size of $500 million.

The fund is designed to deploy capital across multiple strategies, with a focus on core infrastructure and scalable use cases aimed at broader adoption.

According to the firm, emerging markets are expected to play a central role, as these regions are increasingly acting as testing grounds for blockchain-based financial services and applications.

Institutional conviction on the back foot

The timing of the close is notable. Crypto markets have been adjusting after a sharp sell-off earlier in October, when a major liquidation event triggered widespread deleveraging.

In a Tuesday post on X, 10x Research said many traders and market makers had reduced activity following the Oct. 10 crash, contributing to thinner liquidity.

Since early November, the 30-day moving average of net flows into US spot Bitcoin and Ether ETFs has turned negative, suggesting that capital is being redeployed or held on the sidelines as conditions tighten.

Track record and expansion

Fund IV builds on HashKey Capital’s established presence in Asia’s digital asset sector.

Since launching in 2018, the firm has grown to manage more than $1 billion in assets and has invested in over 400 projects globally.

Its first fund recorded a distributed-to-paid-in ratio of more than 10x, underlining the scale of returns achieved in earlier cycles.

The firm is headquartered in Singapore and operates across Hong Kong and Japan.

It is part of the broader HashKey Group, which was among the first in Hong Kong to secure a crypto exchange licence.

The group has also been involved in launching the city’s first spot Bitcoin and Ether ETFs, adding to its regulatory and market footprint.

The fundraise comes shortly after HashKey’s entry into public markets.

Last week, the company made its trading debut on the Stock Exchange of Hong Kong following a $206 million initial public offering.

The listing adds another layer of visibility at a time when scrutiny of crypto firms remains high and access to traditional capital markets is becoming more selective.

Hong Kong-based HashKey Group has released its “Top 10 Market Predictions for 2025,” forecasting major developments in the cryptocurrency sector.

Among the predictions, Bitcoin is expected to break the $300,000 mark, while Ethereum could exceed $8,000, driven by growing adoption and institutional investments. The company’s forecasts were based on insights from nearly 50,000 community members who voted during a nine-day period.

Bitcoin to Surpass $300K Amid Market Growth

HashKey sees Bitcoin potentially rising to $300,000 by 2025 due to the growing acceptance as a ‘digital gold’ and the rising institutional investment. The cryptocurrency industry is expected to reach a total market capitalization of $10 trillion due to the entry of new investors and the innovation in the technology of the blockchain.

At the time of the prediction, Bitcoin price was $99,367 with the price slowly rising after some fluctuations in the recent past. Technical analysis shows that there is a strong buying pressure around $92,300, which may propel Bitcoin further upwards. HashKey also pointed out that this growth could be significantly influenced by regulatory certainty and approval of Bitcoin ETFs.

Dr. Xiao Feng, Chairman and CEO of HashKey Group said, “2025 is the starting point of the ‘Golden Decade of Web3’ with immense potential.”

Approval of XRP and Solana ETFs Expected

HashKey, like JPMorgan Chase, expects that Solana (SOL) and XRP will be approved for the use in new exchange-traded funds (ETFs) which may draw in billions of dollars in investments. These ETFs are expected to further increase the institutional investment in the cryptocurrency space and thus help in the growth of the sector.

The group noted that the U.S. Securities and Exchange Commission (SEC) has not made any decision on these ETFs but if approved, they could boost capital inflows. This comes after the launch of other crypto ETFs by HashKey in Hong Kong in 2024 which provided significant inflows to Bitcoin and Ethereum.

”New ETFs for assets like XRP and SOL could serve as a gateway for more investors to enter the crypto market,” HashKey said.

Growth in Stablecoins and Real-World Assets

According to the research, the market capitalization of USDT, USDC, and other USD-pegged stablecoins will likely reach $300 billion by 2025 due to the increasing need for regulated and asset-backed digital dollars. At the moment, Tether is the most popular stablecoin with USDT in circulation amounting to $138 billion, while Circle’s USDC is second with $46 billion.

According to HashKey, these include stablecoins that are backed by yield-bearing and real-world assets which have the potential of connecting the traditional and digital financial systems. 

In addition, stablecoins and new payment systems are expected to be supported by new regulations in many regions.

U.S. Policy Changes and Strategic Bitcoin Reserve

HashKey expects the U.S. government to adopt more crypto-friendly policies under the new administration, including approval of the FIT21 Act. This act would expand the oversight of the Commodity Futures Trading Commission (CFTC) and create a clearer framework for digital commodities like Bitcoin.

The prediction also includes the establishment of a U.S. strategic Bitcoin reserve to support the dollar and maintain global financial stability. This move could further solidify Bitcoin’s status as a key global asset.

As regulatory clarity improves, HashKey projects an inflow of $3 trillion into the crypto market through security token offerings, exchange-traded funds, and central bank digital currencies.

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Kelvin Munene Murithi

Kelvin is a distinguished writer with expertise in crypto and finance, holding a Bachelor’s degree in Actuarial Science. Known for his incisive analysis and insightful content, he possesses a strong command of English and excels in conducting thorough research and delivering timely cryptocurrency market updates.

Disclaimer: The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.