Hashkey Capital has secured $250 million in commitments for the first close of its fourth crypto-focused fund amid “significant interest” from institutional investors despite changing 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 Wednesday.
Hashkey did not identify the investors, but said the commitment comes from global institutional investors, family offices and high-net-worth individuals.
The transaction comes as short-term liquidity providers exit the crypto market and financial institutions express their beliefs through long-term capital. Hashkey Capital said the fund will pursue multiple strategic approaches to investing in “infrastructure, scalable and high-volume deployment 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 proving ground for real-world applications of blockchain, and Fund IV provides the essential fuel to scale these innovations globally,” said Deng Chao, CEO of HashKey Capital.
Related: HashKey plans to become Hong Kong’s first crypto IPO
Double your crypto bets with HashKey
The latest fund builds on the investment firm's track record as one of the most active institutional investors in Asia's crypto scene. Since our founding in 2018, we have grown to manage over $1 billion in assets and invested in over 400 projects worldwide. Its first fund had a distribution to payout 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, one of the first companies to receive a crypto exchange license in Hong Kong. He also played a role in launching the city's first spot Bitcoin (BTC) and Ether (ETH) exchange traded funds (ETFs).
Hashkey made its trading debut on the Hong Kong Stock Exchange (HKEX) last week after a $206 million initial public offering.
Hashkey stock is up 4% today. sauce: Google Finance
Cointelegraph reached out to Hashkey for comment, but did not receive a response in time for publication.
Related: HashKey Cryptocurrency Exchange Launches IPO Subscription in Hong Kong, Targeting $215 Million
Virtual currency market makers withdraw
In a Tuesday post on X, 10x Research revealed that many traders and market makers have “backed out” since the October 10 market crash, which was the largest liquidation event in crypto history.
Glassnode also said that continued outflows from Bitcoin and Ether ETFs indicate that institutional investor participation in the cryptocurrency market is decreasing.
Since early November, the 30-day moving average of net inflows into U.S. Bitcoin and Ether spot ETFs has turned negative, suggesting large investors are pulling back as market-wide liquidity tightens.
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