HashKey Capital Secures $250M First Close for Multi-Strategy Crypto Fund as Liquidity Tightens

Institutional Capital Leans Long-Term While Short-Term Crypto Liquidity Pulls Back

TL;DR

• HashKey Capital closed $250 million in the first round of a $500 million multi-strategy crypto fund on Dec. 24, 2025.
• The fund targets infrastructure, public and private markets, and emerging-market adoption amid reduced short-term liquidity.
• The raise highlights a widening gap between long-horizon institutional capital and near-term crypto price volatility.

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HashKey Capital disclosed on Dec. 24, 2025 that it has secured $250 million in the first close of its fourth flagship investment vehicle, marking a significant institutional commitment to digital assets at a time when short-term crypto liquidity continues to retreat. The fund, officially named HashKey Fintech Multi-Strategy Fund IV, is targeting a total size of $500 million, putting the initial close at exactly half of its intended capital base. The timing of the raise stands out, arriving amid persistent volatility in crypto price movements and weakening participation from short-duration capital, even as long-term allocators maintain conviction in blockchain infrastructure and adoption.

The newly raised capital came from a mix of global institutional investors, family offices, and high-net-worth individuals, according to HashKey Capital, though the firm did not disclose specific limited partners. Fund IV is designed as a multi-strategy vehicle, combining public-market exposure, liquidity-focused crossover strategies, and selective private investments. The mandate spans blockchain infrastructure, scalable platforms, and real-world use cases, with a particular emphasis on emerging markets where HashKey believes adoption dynamics are most visible. The firm has framed these regions as practical testing grounds for blockchain applications that extend beyond speculative trading and short-term crypto price fluctuations often reflected in daily crypto price index readings.

HashKey’s leadership positioned the fundraise as a deliberate countercyclical move. CEO Deng Chao said the $250 million first close places the firm in a strong position to capture structural growth opportunities, especially as short-term liquidity providers scale back following market stress earlier in the quarter. That pullback has been visible across derivatives and exchange-traded products, where net outflows and declining volumes have weighed on sentiment, even as broader coin market cap levels remain elevated compared with previous cycles. Founder Dr. Xiao Feng added that the firm views the period leading into 2026 as one of convergence between artificial intelligence, blockchain, and institutional finance, themes the new fund is expected to actively pursue.

HashKey Capital’s ability to attract capital during a period of tightening liquidity is closely tied to its track record. Founded in 2018, the firm has managed more than $1 billion in assets and backed over 400 blockchain-related projects globally. Its first fund reportedly achieved a distributed-to-paid-in ratio exceeding 10x, a performance metric that continues to resonate with institutional allocators assessing long-horizon exposure to digital assets beyond short-term crypto price cycles. The firm operates across key Asian financial hubs, including Singapore, Hong Kong, and Japan, and has played a visible role in bridging traditional finance and regulated crypto products, including support for Hong Kong’s spot Bitcoin and Ether exchange-traded funds.

The broader context around the raise underscores a growing divergence within crypto markets. While daily crypto price movements and headline coin market cap figures remain sensitive to macro signals and liquidity shifts, capital with multi-year horizons appears increasingly willing to commit through structured funds rather than liquid instruments. HashKey’s announcement reinforces that split, suggesting institutional investors are prioritizing infrastructure and adoption narratives over near-term trading opportunities, even as public market indicators continue to reflect uneven sentiment across the digital asset landscape.

This article has been refined and enhanced by ChatGPT.