Huobi founder Li Lin, in collaboration with prominent Asian crypto investors, has secured $1 billion to launch a new digital asset trust. The fund is specifically designed to accumulate Ethereum (ETH), signaling a significant move to meet growing institutional demand for the cryptocurrency.
Key Takeaways
- Huobi founder Li Lin and partners have raised $1 billion for an Ethereum-focused investment trust.
- Major investors include HongShan Capital, which contributed $500 million, and Li's own Avenir Capital, which added $200 million.
- The trust will operate through a Nasdaq-listed shell company to offer a regulated investment vehicle for institutions.
- This initiative aims to capitalize on the increasing institutional interest in digital assets, following the approval of spot Bitcoin ETFs.
New $1 Billion Fund Targets Ethereum
A group of influential figures in Asia's cryptocurrency sector has successfully raised $1 billion for a new investment vehicle. The trust will focus exclusively on acquiring and holding Ethereum, the second-largest digital asset by market capitalization.
The effort is led by Li Lin, the founder of the Huobi crypto exchange. He is joined by several early backers of Ethereum, including Shen Bo, co-founder of Fenbushi Capital, and Xiao Feng, the chairman and CEO of HashKey Group. Cai Wensheng, founder of Meitu Inc. and a well-known crypto investor in China, is also part of the initiative.
This collaboration brings together individuals who have been involved in the digital asset space since its early days, combining deep industry knowledge with significant financial backing.
Meeting Market Demand
The creation of this trust comes as financial institutions show greater interest in regulated crypto products. The recent success of spot Bitcoin exchange-traded funds (ETFs) in the United States has paved the way for similar products, with many anticipating the eventual approval of spot Ether ETFs.
Strategic Structure for Institutional Access
To ensure a regulated framework and attract institutional capital, the group plans to structure the Ether trust through a Nasdaq-listed shell company. This approach provides a familiar and compliant entry point for large-scale investors who are often restricted from directly holding digital assets.
By using a public company structure, the trust aims to offer transparency and regulatory oversight that is appealing to institutional clients. An official announcement detailing the full structure is expected within the next few weeks, according to sources familiar with the matter.
Major Financial Commitments
The $1 billion funding goal has already been met. HongShan Capital, formerly known as Sequoia China, is the largest backer with a $500 million contribution. Li Lin's own investment firm, Avenir Capital, has committed $200 million to the trust.
The Investors Behind the Initiative
The individuals leading this fund are pioneers in the Asian crypto market. Their collective experience adds significant credibility to the venture.
Li Lin and Avenir Capital
Li Lin founded Huobi in 2013 and built it into one of the world's leading cryptocurrency exchanges. Following China's ban on crypto-related activities in 2021, he sold his majority stake to entrepreneur Justin Sun. Li subsequently established Avenir Capital, a Hong Kong-based investment firm that has become a major holder of Bitcoin ETFs, with over $1 billion in assets under management.
Early Ethereum Proponents
The partners involved were part of the first wave of Chinese entrepreneurs to invest in Ethereum shortly after its launch in 2015.
- Shen Bo: Co-founder of Fenbushi Capital, one of the earliest and most active blockchain-focused venture capital firms in Asia.
- Xiao Feng: Chairman of HashKey Group, which was one of the first companies to receive a virtual asset trading license in Hong Kong, positioning it as a key regulated player in the region.
- Cai Wensheng: Founder of the popular photo-editing app Meitu Inc., he has made several high-profile crypto investments through his personal fund.
Ethereum's Growing Role in Institutional Finance
The launch of this trust aligns with a broader industry trend where Ethereum is increasingly viewed as a foundational asset for the future of finance. At the recent Digital Assets Summit 2025 in London, industry leaders discussed Ethereum's potential to support trillions of dollars in value.
Consensys CEO Joseph Lubin stated that Ethereum's ongoing evolution toward greater scalability and regulatory compliance is boosting institutional confidence. He highlighted its infrastructure, staking yields, and tokenization capabilities as key drivers of adoption.
Industry experts believe that catalysts such as on-chain fund issuance, improved interoperability between networks, and clearer regulations could solidify Ethereum's dominance in decentralized finance (DeFi) and the tokenization of real-world assets.
Joseph Chalom, Co-CEO of SharpLink and a former BlackRock executive, also commented on the market's maturation. Reflecting on a recent market crash, he attributed the turmoil to "insidious leverage garbage" and stressed the importance of building more resilient financial structures on blockchains like Ethereum.
This new $1 billion fund led by Li Lin represents a strong vote of confidence in Ethereum's long-term value and its central role in the expanding digital asset economy.
