HashKey Capital has secured $250 million in commitments for the first close of its fourth crypto-focused fund, signaling continued institutional appetite for digital asset exposure despite uneven market conditions. The firm said the fund attracted significant interest from long-term investors even as short-term liquidity in crypto markets has tightened.
The fund, named HashKey Fintech Multi-Strategy Fund IV, exceeded internal expectations at its initial close and is targeting a final size of $500 million. HashKey Capital did not disclose specific investors but said commitments came from a mix of global institutions, family offices, and high-net-worth individuals.
The raise comes at a time when many trading-focused participants have reduced activity following periods of heightened volatility. Against that backdrop, HashKey said institutional capital is increasingly being deployed through longer-duration investment vehicles rather than short-term trading strategies.
Institutional Conviction amid Liquidity Pullback
HashKey Capital said Fund IV will pursue a multi-strategy approach focused on infrastructure, scalable platforms, and use cases aimed at mass adoption. The strategy reflects a broader shift among institutional investors toward foundational blockchain investments rather than speculative trading opportunities.
“With $250 million in new capital, we are uniquely positioned to capture the massive growth occurring in emerging markets,” said Deng Chao, chief executive officer of HashKey Capital. He added that those regions are increasingly serving as proving grounds for real-world blockchain applications.
Market data supports the firm’s assessment of a changing investor mix. Recent reports from research firms have shown that many market makers and short-term traders have stepped back following large liquidation events, contributing to thinner liquidity across major crypto assets. At the same time, ETF flow data suggests some institutions are reducing tactical exposure while maintaining strategic allocations.
From a macro perspective, elevated interest rates and tighter financial conditions have encouraged investors to be more selective. For crypto-focused funds, that environment has favored managers with longer track records, regional expertise, and clearer regulatory positioning.
Track Record and Regional Positioning
Fund IV builds on HashKey Capital’s history as one of Asia’s most active institutional crypto investors. 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 achieved a distributed-to-paid-in ratio exceeding 10x, according to the company.
HashKey Capital is headquartered in Singapore, with operations in Hong Kong and Japan, and serves as the investment arm of Hong Kong-based HashKey Group. The broader group has played a prominent role in Hong Kong’s regulated crypto ecosystem, including participation in the launch of the city’s first spot Bitcoin and Ether exchange-traded funds.
The fundraising also follows HashKey Group’s recent public listing in Hong Kong after completing a $206 million initial public offering. The IPO has reinforced the firm’s profile with institutional investors seeking regulated exposure to the digital asset sector in Asia.
As global crypto markets adjust to lower leverage and more cautious capital deployment, HashKey’s latest fundraise suggests that institutional investors continue to view the sector’s long-term growth prospects as intact, particularly in regions where regulatory frameworks are becoming more defined.