Shares of HashKey Group rose by 3% during its debut on the Hong Kong stock exchange, reflecting a positive reception for the company amid a challenging climate for cryptocurrencies. The crypto exchange successfully raised approximately $206 million through its initial public offering (IPO), garnering around 1.6 billion Hong Kong dollars after pricing its shares at HK$6.68 each. This price was close to the upper limit of the anticipated range, which was established between HK$5.95 and HK$6.95.
HashKey, now the largest licensed crypto exchange in Hong Kong, enters the market at a time when cryptocurrencies are experiencing significant fluctuations, with Bitcoin, the world’s leading cryptocurrency, seeing a sharp decline of about 36% in the past month following its peak of over $126,000 earlier in October. In spite of these challenging market conditions, HashKey’s launch marks a notable development for the digital asset sector in the region.
The company has garnered support from several key cornerstone investors, including major financial entities such as Fidelity, UBS, and Chinese investment firm CDH Investments, alongside Cithara Fund. The underwriting of the IPO was managed by financial powerhouses JPMorgan and Guotai Haitong.
In a statement, HashKey’s Chief Financial Officer, Eric Zhu, emphasized the firm’s commitment to increasing accessibility to digital assets. He stated, “Our mission is to make digital assets massively accessible, and what we are doing is to create a compliant platform to connect our users with the digital assets industry.” Zhu expressed confidence that the rate of cryptocurrency adoption in Hong Kong, along with the wider Asian market, will eventually align with trends observed in the United States.
The listing highlights Hong Kong’s progressive stance toward cryptocurrencies, especially while mainland China maintains a strict ban on digital assets that has been in place since 2021. Industry experts are optimistic about Hong Kong’s potential to become a major hub for regulated digital assets in Asia. William Ma, Chief Investment Officer at GROW Investment Group, remarked on this milestone, stating, “We believe Hong Kong is establishing itself as a key hub for regulated digital assets in Asia.”
As HashKey embarks on this new chapter, the outlook for the digital asset and wealth management sectors remains closely tied to both local regulations and the broader global market dynamics.
