HashKey Group, based in Hong Kong, announced the launch of a significant $500 million investment fund aimed at digital asset treasuries (DATs). This fund will primarily concentrate on gaining exposure to the price performance of Bitcoin and Ether.
The newly established fund is structured as a perpetual investment vehicle strictly for institutional clients, allowing for regular subscriptions and redemptions. This structure draws parallels to an open-ended crypto hedge fund, differentiating it from passive exchange-traded funds (ETFs). HashKey indicates that their fund is designed to invest in projects and companies implementing DAT strategies, emphasizing a more active investment approach. This launch comes on the heels of Nasdaq’s announcement regarding heightened scrutiny of the crypto holdings of listed companies, which HashKey interprets as a shifting phase in the industry that favors the “survival of the fittest.”
The DAT initiative is part of HashKey’s broader ambition to bridge traditional finance and digital assets. The firm argues that DATs align more closely with the continuous and high-volatility nature of the cryptocurrency market compared to traditional passive ETF products. According to HashKey’s latest quarterly report, the company currently manages over HK$12 billion (approximately $1.5 billion) in clients’ assets. The firm also operates licensed exchanges, ETFs, and an Ethereum layer-2 chain. Earlier this year, HashKey expanded its institutional offerings by introducing Asia’s first XRP tracker fund.
In the context of regulatory developments, Hong Kong has positioned itself as a leader in crypto innovation within China. The city has established a regulatory environment conducive for institutional investment, fostering the growth of ventures like HashKey’s. In April 2024, Hong Kong became the first Asian jurisdiction to approve spot Bitcoin and Ether ETFs, following local regulators’ clarification that Ether does not qualify as a security. This decision provided investors with a level of certainty that was previously lacking in markets like the United States.
Further enhancing its regulatory framework, Hong Kong authorities expanded opportunities for crypto derivatives trading for professional investors in June 2025, and also adjusted tax regulations to attract digital asset funds and family offices as part of a second virtual asset policy statement. The same month, Hong Kong launched the LEAP framework to support licensed stablecoin issuance, along with tokenized bonds aimed at connecting digital assets with real-world applications. By July, the city completed its third issuance of tokenized green government bonds, signaling a commitment to integrating digital bond issuance into public finance practices.
As regulations evolve, Asian family offices are increasingly incorporating crypto into their investment strategies, with some allocating up to 5% of their portfolios to digital assets, according to a report from July. While Hong Kong advances its regulatory landscape for ETFs, derivatives, and tokenization, mainland China has primarily concentrated on its state-backed digital yuan, which has seen expanding pilot programs since 2020 in various sectors, including public transport and retail payments.
