HashKey Fund: Hong Kong Unveils Landmark $500M Digital Asset Treasury Initiative

The cryptocurrency landscape continues its dynamic evolution, particularly within Asia. In a significant move, HashKey Group, a prominent player in the digital asset space, has launched a **HashKey fund** valued at an impressive $500 million. This new fund specifically targets digital asset treasuries (DATs) in Hong Kong, signaling a robust commitment to institutional investment in the burgeoning crypto market. This initiative aims to provide sophisticated exposure to leading cryptocurrencies like Bitcoin and Ether, marking a pivotal moment for **Hong Kong crypto** ambitions.

HashKey Fund Targets Strategic Digital Asset Treasury Growth

HashKey Group’s latest venture, a $500 million investment fund, is set to revolutionize how institutions engage with digital assets. Announced recently, this **HashKey fund** focuses on digital asset treasuries (DATs), initially prioritizing the price performance of Bitcoin (BTC) and Ether (ETH). The fund is structured as a perpetual, institutional-only vehicle, allowing for flexible subscriptions and redemptions. This operational model resembles an open-ended crypto hedge fund, providing agility in a fast-paced market. Significantly, HashKey emphasizes that this fund goes beyond passive investment; it actively seeks to invest in projects and companies that strategically deploy DAT strategies. This proactive approach differentiates it from traditional passive exchange-traded funds (ETFs), aligning more closely with the inherent volatility and 24/7 nature of the crypto market.

The launch of this substantial fund comes at a critical juncture for the industry. Nasdaq recently called for enhanced scrutiny of listed companies’ crypto holdings. HashKey views this development not as a challenge, but as a test—a ‘survival of the fittest’ scenario for the digital asset sector. Consequently, the **digital asset treasury** initiative represents HashKey’s broader commitment to bridging the gap between traditional finance and the innovative world of crypto assets. The company states, “Compared with passive ETF products, DAT is more aligned with the around-the-clock, high-volatility nature of the crypto market.” This perspective underscores the fund’s design, which aims to leverage the unique characteristics of digital assets for institutional benefit.

Hong Kong Crypto Hub: A Regulatory Pioneer

Hong Kong has strategically positioned itself as a leading global hub for **Hong Kong crypto** innovation and regulation. This proactive stance provides a stable and clear regulatory environment for companies like HashKey to launch large-scale investment products. For example, in April 2024, Hong Kong became the first jurisdiction in Asia to approve spot Bitcoin (BTC) and Ether (ETH) ETFs. Local regulators also clarified that Ether was not a security, offering a level of regulatory certainty that was still absent in other major markets, including the United States, at the time.

The city’s commitment to fostering a robust digital asset ecosystem extends further. In June 2025, authorities expanded the regulatory framework to permit crypto derivatives trading for professional investors. Furthermore, they adjusted tax rules specifically to attract digital asset funds and family offices, solidifying Hong Kong’s appeal to institutional capital. These new policies were comprehensively outlined in Hong Kong’s second virtual asset policy statement. The city also introduced its LEAP framework in June, paving the way for licensed stablecoin issuance, along with tokenized bonds and broader Real World Asset (RWA) tokenization. These initiatives aim to seamlessly connect digital assets with tangible real-world applications, enhancing utility and adoption.

The government’s intent to normalize digital bond issuance is evident through its completion of a third issuance of tokenized green government bonds by July. Against this backdrop of expanding regulation and diverse product launches, Asian family offices have significantly increased their crypto allocations. A July report indicated that some family offices now allocate up to 5% of their portfolios to digital assets, reflecting growing confidence and acceptance. While Hong Kong champions advanced frameworks for ETFs, derivatives, and tokenization, mainland China continues to focus on its state-backed digital yuan, with pilots expanding into public transit, retail payments, and air travel since 2020.

Driving Institutional Crypto Adoption with Bitcoin Ether Investment

HashKey’s new fund is a significant step in driving **institutional crypto** adoption. By offering a dedicated **Bitcoin Ether investment** vehicle, the group addresses a crucial demand from professional investors seeking structured exposure to the top cryptocurrencies. HashKey currently manages over HK$12 billion ($1.5 billion) in client assets, as per its latest quarterly report. The company also operates licensed exchanges, various ETFs, and an Ethereum layer-2 chain, demonstrating its extensive infrastructure and expertise in the digital asset sector. In April, HashKey further expanded its institutional offerings by launching Asia’s first XRP tracker fund, showcasing its diversified approach to digital asset management.

The strategic focus on DATs, rather than just passive ETFs, highlights an understanding of the sophisticated needs of institutional clients. DATs provide a more dynamic and active management approach, which HashKey believes is better suited to the inherent characteristics of the crypto market. This approach allows for greater flexibility and potentially optimized returns in a volatile environment. The fund’s perpetual, institutional-only structure further reinforces its commitment to serving high-net-worth individuals and corporate treasuries. This tailored solution helps bridge the gap between traditional finance and the digital asset economy, making it easier for large-scale investors to enter and navigate the crypto space with confidence.

The Future of Digital Asset Treasury in Hong Kong

The launch of HashKey’s $500 million **digital asset treasury** fund solidifies Hong Kong’s position as a forward-thinking jurisdiction for digital assets. This initiative not only provides a robust investment avenue for Bitcoin and Ether but also underscores the growing maturity of the **institutional crypto** market. HashKey’s strategy aligns perfectly with Hong Kong’s vision to become a global virtual asset hub, characterized by clear regulations and innovative financial products. The city’s progressive policies, including the approval of spot crypto ETFs and frameworks for tokenization, create an attractive ecosystem for digital asset businesses and investors alike. As a result, this fund is poised to attract significant capital, further integrating digital assets into the broader financial landscape.

The increasing interest from Asian family offices, with some allocating up to 5% of their portfolios to digital assets, demonstrates a clear trend towards greater acceptance and integration. HashKey’s proactive approach, combined with Hong Kong’s supportive regulatory environment, sets a powerful precedent. This development encourages other financial institutions to explore similar ventures, ultimately fostering wider adoption and innovation within the digital asset space. The emphasis on DATs provides a sophisticated alternative to traditional investment vehicles, offering institutions a more active and tailored approach to managing their digital asset exposures. This fund is not merely an investment product; it is a testament to the evolving financial landscape where digital assets are becoming an integral part of modern treasury management.