Ethereum Treasury Set to Grow as Huobi Founder Leads $1B Initiative
TLDR
- Huobi founder Li Lin is launching a $1 billion Ethereum treasury firm, backed by major Asian investors.
- The planned firm will acquire and hold Ethereum as its core reserve asset to boost long-term institutional demand.
- Avenir Capital has committed $200 million while Asian institutional investors have added another $500 million.
- The group is in talks to acquire a Nasdaq-listed shell company to establish the Ethereum treasury firm.
- This new firm could become the fourth-largest public holder of Ethereum based on its planned reserve.
Li Lin, founder of crypto exchange Huobi, plans to launch a $1 billion Ethereum treasury firm with key Asian investors. The initiative aims to acquire and hold Ethereum in large quantities, creating renewed demand amid the current downtrend. Backed by substantial institutional capital, the project is expected to have a significant impact on Ethereum holdings globally.
Li Lin’s Ethereum Treasury Initiative Gains $1 Billion Backing
Huobi founder Li Lin is establishing a $1 billion Ethereum treasury firm, backed by key investors from the crypto industry. His investment firm, Avenir Capital, committed $200 million while Asian institutions added $500 million to the fund. The firm will aim to hold Ethereum as its core reserve asset, signaling strong long-term commitment.
The group includes Fenbushi Capital co-founder Shen Bo and HashKey Group CEO Xiao Feng, both early supporters of Ethereum. According to Bloomberg, the team is acquiring a Nasdaq-listed shell company to establish the Ethereum treasury firm. A public announcement is expected to arrive within two to three weeks.
This Ethereum treasury will mirror other major firms holding ETH, joining a select group with large-scale on-chain reserves. Such firms include Tom Lee’s BitMEX and Joseph Lubin’s ConsenSys, already known for their Ethereum holdings. These strategic reserves demonstrate growing institutional belief in Ethereum’s long-term value.
New Firm May Become Fourth-Largest Ethereum Holder
Li Lin’s firm could become the fourth-largest public Ethereum holder if it secures $1 billion worth of ETH for its treasury. Current Strategic ETH Reserve data shows 70 companies hold 5.90 million ETH, or 5% of the supply. The new Ethereum treasury firm would hold more than most existing firms.
BitMine recently added $400 million in ETH, reinforcing confidence despite the market decline. BlackRock also increased its ETH position, even as other ETFs saw outflows. This steady accumulation underlines a broader strategic shift toward Ethereum treasury positioning.
Li’s initiative could reshape the Ethereum landscape by setting a new benchmark for corporate ETH holdings. The fund’s scale may influence both pricing and market sentiment. Therefore, its establishment marks a critical development in Ethereum treasury expansion.
Ethereum Treasury Growth Offers Bullish Outlook Amid Decline
The Ethereum treasury space is expanding while ETH remains below $4,000 during the current market pullback. Despite ETH’s 2% drop, institutions are increasing their Ethereum reserves. This ongoing accumulation supports confidence in Ethereum’s future potential.
Strategic Ethereum treasuries act as a hedge and long-term growth strategy for companies. With growing interest, the Ethereum treasury model is becoming a preferred option among institutional investors. Larger treasuries could stabilize ETH prices and increase liquidity.
Ethereum treasury growth signals positive momentum, despite the broader crypto market facing downward pressure. This trend could help ETH recover in the near term. Li Lin’s Ethereum treasury firm may catalyze renewed investor interest.
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