HashKey Capital Announces $500 Million Raise for Crypto & Blockchain Fund

HashKey Capital, a cryptocurrency-focused asset management firm, is kicking off 2023 with a massive capital raise as it looks to bolster the adoption of blockchain technology and Web3 across the globe.

Pushing the boundaries of Crypto & Blockchain 

Earlier this week, the Hong Kong-based investment firm confirmed that it had closed its FinTech Investment Fund III. The firm raised an impressive $500 million, marking a very attractive funding round, especially amid the bear market. 

According to the announcement, HashKey explained that Fund III received investment commitments from several institutional players – including corporations, sovereign wealth funds, and family offices. 

The funds will be earmarked to invest in infrastructure, tools, and applications that will push the adoption of crypto and blockchain products and technologies. The Hong Kong firm explained that it would continue to follow its principles, looking out for game changers who propel the industry forward. 

HashKey is one of the most notable investment firms in the crypto space. With over $1 billion in assets under management, the company has invested in several top crypto firms, including Polygon Studios, Blockdaemon, and Animoca Brands.  

Speaking with industry news sources, Xiao Xiao, HashKey’s investment director, pointed out that investors remain committed to the market as synergies in the Web3 space continue to grow. And as the space continues to surge, both traditional institutions and internet giants are seeing investment opportunities. 

Xiao pointed out that financial organizations see crypto as another asset class that can help them to diversify their portfolios while also seeing opportunities to invest in companies that can transform the future of finance. By investing in a fund, institutions can easily engage with the Web3 space, and HashKey is looking to be that gateway. 

The investment director also claimed that the 2022 bear market had caused a significant shift in investor operations across the crypto space. With more institutions coming in, many of these companies are looking to focus more on long-term value instead of just short-term objectives. This aligns with HashKey’s investment procedures, which prioritize projects and companies with solid fundamentals. 

Where Will HashKey’s Funds Go?

While there is no indication of where HashKey will be allocating capital, it’s safe to say that the company will be looking into the decentralized finance (DeFi) sector. Weeks back, HashKey shared its 2022 DeFi Ecosystem Landscape Report, showing that the DeFi sector appears poised for significant growth going into 2023. 

As HashKey explained, the still-nascent DeFi space continues to attract a massive wave of venture capital. Investments into the space amounted to over $14 billion in the first half of 2022 alone, with venture capital firms backing 725 projects at the time. 

The report also highlighted that not just venture capital investment flowed into the space – the DeFi sector also attracted new users, with user growth hitting 44% quarter-over-quarter in the past year. And with the entire industry hitting over 5 million user wallets by the third quarter of the past year, new user engagement is still very active. 

These numbers show that the DeFi sector could still achieve exponential growth heading into 2023. While the Hong Kong investment firm isn’t looking to make any pronouncements about how it plans to earmark the funds from this new capital raise, it won’t be surprising to see it dive into the DeFi sector.