HashKey Secures $250M Amid Crypto Liquidity Retreat

TL;DR

• HashKey Capital closed the first round of its fourth crypto fund with $250 million, targeting a total fund size of $500 million.
• The HashKey Fintech Multi-Strategy Fund IV will invest in infrastructure, scalable platforms, and blockchain applications, with a focus on emerging markets.
• Following the October crash and a pullback in short-term liquidity, the firm is committing long-term capital to adoption and infrastructure projects.

HashKey Capital’s first close of its fourth crypto fund raised $250 million, setting a new milestone in its institutional expansion.

The HashKey Fintech Multi-Strategy Fund IV targets a total size of $500 million and received support from institutional investors, family offices, and high-net-worth individuals, despite a tighter short-term liquidity environment in the market.

The fund will deploy capital across a wide range of blockchain investments, focusing on infrastructure, scalable platforms, and applications designed for mass adoption, with particular emphasis on emerging markets.

According to the firm, these economies serve as testing grounds for real-world use cases, including payments, financial infrastructure, and digital services. The plan is to leverage the retreat of short-term liquidity, highlighting that long-term capital is increasingly willing to commit, trusting that infrastructure and adoption-focused projects will define the next phase of the crypto market cycle.

HashKey Bets on Long-Term Capital, Adoption, and Infrastructure

Since its founding in 2018, HashKey Capital has grown to manage over $1 billion in assets and has invested in more than 400 projects worldwide. Its inaugural fund reported a distributed-to-paid-in (DPI) ratio exceeding 10x, demonstrating solid returns in prior market cycles. The firm operates from Singapore, with offices in Hong Kong and Japan, and is part of a key group shaping Hong Kong’s regulated crypto market, securing one of the first local exchange licenses and contributing to the launch of the city’s first Bitcoin and Ethereum ETFs.

HashKey’s expansion is also visible in public markets: last week, its shares began trading on the Hong Kong Stock Exchange following a $206 million IPO, posting gains shortly after listing.

After the October crash and the largest liquidation in industry history, many traders and market makers reduced activity, and net flows into U.S. spot ETFs turned negative. As short-term liquidity providers step back, funds like HashKey’s are committing multi-year capital, prioritizing infrastructure and adoption-focused projects.