HashKey Group Targets $500M Crypto Treasury Fund, Wants Asia’s Largest Digital Asset Ecosystem
HashKey Group, Asia’s leading digital asset financial services group, has announced plans to launch a $500 million digital asset treasury (DAT) fund.
The Hong Kong based group aims to create “Asia’s largest multi-currency DAT ecosystem fund for the global market,” it said in a Sept. 8 announcement.
“By spearheading, investing in, and operating top-tier DAT projects worldwide, HashKey aims to promote standardized management of crypto assets and drive the sustainable growth of the Web3 ecosystem,” the group said.
HashKey Will Build A Diversified Portfolio Of DATs
HashKey has already invested in over 600 global blockchain and crypto companies. Ethereum ecosystem projects make up the lion’s share of these investments, with HashKey having made 400 such investments thus far.
With the new fund, the HashKey Group said in the announcement that it aims to build a diversified DAT portfolio by “initiating and investing in a range of DAT projects focused on mainstream crypto assets.”
Initially, the group said it will prioritize companies that have bought into crypto market leaders Bitcoin (BTC) and Ethereum (ETH).
That could include Strategy and Metaplanet, which are among the largest corporate Bitcoin holders globally. It could also include BitMine Immersion Technologies, which is currently the largest corporate ETH holder.
With the fund, HashKey says it wants to create an “institutional bridge” between traditional finance capital and on-chain assets. It will also serve as a compliant and efficient channel for institutional investors to participate in the digital asset space and generate potential returns, according to the announcement.
The $500 million fundraising target will be the first phase of the fund, the group said.
DATs Align More With Crypto Than ETFs, Says HashKey
Institutional investors already have the ability to invest in Bitcoin and Ethereum through an investment vehicle that they are familiar with following the launch of spot Bitcoin and spot Ethereum ETFs (exchange-traded funds) in the US last year.
Those products have already seen billions of dollars in cumulative inflows since their respective launches.
However, HashKey believes that a DAT is more aligned with the “around-the-clock, high-volatility nature of the crypto market.”
Number Of Bitcoin Treasuries Tops 300
Strategy, led by executive chairman Michael Saylor, kicked off the crypto treasury trend when it started accumulating BTC back in 2020. Since then, the company has stacked 636,505 BTC on its balance sheet, making it the largest DAT globally, data from Bitcoin Treasuries shows.
Top ten Bitcoin DATs (Source: Bitcoin Treasuries)
Several other companies have copied Strategy’s treasury plan. In the last month, the number of corporate Bitcoin holders have subsequently soared above 300 after 21 new companies joined the trend. Combined, Bitcoin treasury firms hold 3.70 million BTC.
HashKey said in its announcement that growing regulatory clarity in the US in recent months has seen the DAT trend transition “from a broad exploratory phase to a stage of structure selection.”
With the number of DATs on the rise, the Nasdaq has also enhanced its scrutiny of listed companies’ crypto investments. HashKey says this signals the start of a “survival of the fittest” stage for DATs.
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