HashKey Launches $500 Million Digital Asset Treasury Fund in Hong Kong
Hong Kong-based HashKey Group has announced the launch of a $500 million investment fund focused on digital asset treasuries (DATs), primarily targeting exposure to Bitcoin (BTC) and Ether (ETH) price performance. The fund is structured as a perpetual, institutional-only vehicle that allows for regular subscriptions and redemptions, resembling an open-ended crypto hedge fund, according to a company statement.
Unlike passive exchange-traded funds (ETFs), HashKey’s DAT fund actively invests in projects and companies implementing digital asset treasury strategies. This approach reflects the company’s view that DATs better accommodate the crypto market’s continuous trading hours and inherent volatility.
Strategic Context and Industry Positioning
The launch follows Nasdaq’s recent announcement of increased scrutiny over listed companies’ cryptocurrency holdings, which HashKey interprets as marking a “survival of the fittest” phase for the industry. The firm emphasizes that the DAT fund is part of a broader initiative to bridge traditional finance and the digital asset ecosystem.
HashKey currently manages over HK$12 billion (approximately $1.5 billion) in client assets. The company operates licensed exchanges, ETFs, and an Ethereum layer-2 chain. Earlier this year, it introduced Asia’s first XRP tracker fund, expanding its institutional product offerings.
Hong Kong’s Role in Crypto Regulation and Innovation
Hong Kong has increasingly positioned itself as a regional hub for institutional crypto investment, providing a regulatory framework conducive to launching large-scale digital asset products. In April 2024, the city became the first in Asia to approve spot Bitcoin and Ether ETFs, with regulators clarifying that Ether is not classified as a security—a distinction still unresolved in other jurisdictions such as the United States.
In June 2025, Hong Kong expanded its regulatory framework to permit crypto derivatives trading for professional investors and revised tax policies to attract digital asset funds and family offices. These changes were part of the city’s second virtual asset policy statement.
Additionally, Hong Kong’s LEAP framework, introduced in June, enables licensed stablecoin issuance alongside tokenized bonds and real-world asset (RWA) tokenization, further integrating digital assets with traditional financial markets. By July, the city completed its third issuance of tokenized green government bonds, signaling a commitment to regular digital bond offerings within public finance.
Growing Institutional Interest in Crypto
Amid these regulatory advancements, Asian family offices have increased their allocations to digital assets, with some dedicating up to 5% of their portfolios to cryptocurrencies, according to a July report.
While Hong Kong advances its crypto ecosystem through ETFs, derivatives, and tokenization, mainland China continues to focus on its state-backed digital yuan, which has seen pilot programs expand into transit, retail, and air travel sectors since 2020.
FinOracleAI — Market View
HashKey’s launch of a $500 million digital asset treasury fund underscores growing institutional confidence in crypto assets within a maturing regulatory landscape. The fund’s active management approach targets high volatility and continuous market dynamics, differentiating it from passive ETFs. Hong Kong’s regulatory advances, including ETF approvals and tokenization frameworks, provide a supportive environment that may attract further institutional inflows.
Risks include potential regulatory shifts globally and market volatility impacting asset valuations. Monitoring regulatory developments in other major jurisdictions and the fund’s asset allocation will be critical to assessing medium-term performance.
Impact: positive
