HashKey Has ‘Weathered at Least Three Cycles.’ $500M Fund Is Latest Proof.

The notable fundraise comes as crypto markets continue to churn

article-image

Source: Yu Chun Christopher Wong / BeeBright, modified by Blockworks

share

HashKey Capital has raised half a billion dollars for the cryptoasset manager’s latest vehicle. 

The fund, HashKey Fintech Investment III, is designed to key in on “the growing opportunities in emerging [digital asset] markets,” the firm said in a statement on Tuesday. 

It’s a notable $500 million haul in unsteady crypto markets, and the funds have been earmarked to invest in a number of cryptocurrency and blockchain initiatives globally — under that emerging markets focus. Limited partners, according to HashKey, include sovereign wealth funds and family offices. 

HashKey has “weathered at least three cycles in the industry,” according to Dennis Chao, the asset manager’s chief executive. The firm’s parent company, Hong Kong-headquartered HashKey Group, is known as a specialist in investing in blockchain projects in Asia and was an early backer of Ethereum — dating back to 2015. 

“These unique experiences and insights will be invaluable to us in navigating through turbulence,” Chao said in a statement.

Chao’s firm has since backed a number of crypto projects that have since moved into the limelight, including Cosmos, dYdX, Animoca Brands and Polkadot. The cryptoasset manager launched in 2018.

HashKey Group inspired Ethreum’s upcoming “Shanghai Upgrade,” according to Xia Feng, the investment manager’s chair. Shanghai is slated as the next major upgrade for the Ethereum network and is designed to allow the proof-of-stake blockchain’s validators to withdraw their staked ether, the network’s native token. 

The pending upgrade, which appears to be on track to occur in March, marks the first time validators — which verify transactions on the protocol — would mark the first time validators are able to cash in on their locked up ether, which has been accruing staking rewards. Ethereum hit half a million validators earlier this month as momentum builds toward Shanghai. 

“We have maintained since the first day that the power of blockchain and crypto innovation can create a better future,” Feng said. “Fund III will follow our time-tested investment principles while  also looking for game-changers, which would be those that will propel the industry forward into the next stage.”  


Don’t miss the next big story – join our free daily newsletter.

Tags

Upcoming Events

Hilton Metropole | 225 Edgware Rd, London

MON - WED, MARCH 18 - 20, 2024

Crypto’s premier institutional conference returns to London in March 2024. The DAS: London Experience:  Attend expert-led panel discussions and fireside chats  Hear the latest developments regarding the crypto and digital asset regulatory environment directly from policymakers and experts   Grow your network […]

Salt Lake City, UT

WED - FRI, OCTOBER 9 - 11, 2024

Pack your bags, anon — we’re heading west! Join us in the beautiful Salt Lake City for the third installment of Permissionless. Come for the alpha, stay for the fresh air. Permissionless III promises unforgettable panels, killer networking opportunities, and mountains […]

recent research

Frax report cover.jpg

Research

Frax saw continued development in its frxETH liquid staking derivative and Fraxlend money market throughout 2023. Frax V3 introduces an RWA strategy to drive utility to the protocol's cornerstone product, the FRAX stablecoin.

article-image

On-chain debt capital markets platform deploys on Coinbase-incubated layer-2 after structured investment products push

article-image

Past performance is not indicative of future results, sure, but no need to rain on the bitcoin price parade just yet

article-image

Circle’s letter follows one from the Campaign for Accountability alleging ties to Justin Sun and TRON

article-image

Ark could look to sell its $130 million position in GBTC to inject capital into its proposed bitcoin ETF, Bloomberg Intelligence pros say

article-image

In a bid to woo institutional crypto traders, Binance wants help from a bank

article-image

Musk’s hesitation to launch his own crypto made sense in previous cycles. But there’s no shame left around here — he should just go for it