Key Takeaways:
- Hong Kong’s HashKey Group announces the launch of a $500 million treasury fund.
- Bitcoin (BTC) and Ethereum (ETH) treasuries presently control 7.12% and 2.68% of the circulating supply, respectively.
- The Digital Asset Treasury (DAT) fund launched by HashKey will focus on BTC and ETH ecosystem projects.
HashKey Group is Hong Kong’s largest regulated cryptocurrency exchange, with regulatory approval from the Hong Kong Securities and Futures Commission (SFC), and has emerged as a key player in Asia’s digital asset ecosystem.
Moreover, the HashKey group holds commendable credibility in the digital assets space as they have invested in more than 600 global blockchain companies and was one of the first issuers of digital assets spot ETFs on the Hong Kong stock exchange.
The HashKey Group announced the formation of its first Digital Asset Treasury (DAT) fund, targeting $500 million. The recent announcement is a result of the ongoing hype surrounding DATs, as corporate Bitcoin (BTC) treasuries are on the rise. Businesses aim to capitalize on rising BTC prices and an increasingly favorable regulatory environment.
The inspiration for the DAT strategy stems from public companies building humongous corporate treasuries valued over a billion dollars after the prices of cryptocurrencies have been going up since U.S. President Donald Trump was elected.
For instance, Strategy, formerly known as MicroStrategy, which began accumulating BTC in 2020, currently holds 636,505 BTC worth over $70 billion and approximately $28 billion in unrealized profit. According to Standard Chartered, other firms pursuing similar strategies have collectively added nearly 100,000 BTC to their balance sheets this year.
BTC treasury firms dominate this sector, with over $165 billion in BTC assets, while ETH-focused publicly listed companies have over $13 billion in ETH. Treasury entities currently possess 1,494,197 BTC and 3,233,793 ETH, accounting for around 7.12% and 2.68% of the circulating supply, respectively, according to CoinGecko.
HashKey stated that the fund will focus on mainstream crypto assets, initially targeting BTC and ETH ecosystem projects, while also supporting broader efforts to standardize crypto assets and promote the growth of a sustainable Web3 ecosystem.
“HashKey will build a diversified portfolio by initiating and investing in a range of DAT projects focused on mainstream crypto assets, with an initial emphasis on Ethereum and Bitcoin ecosystem projects,” the company said in its announcement.
