Hashkey Capital Raises $500 Million for Its Third Fund, Despite Crypto Market Downturn

On Tuesday, global asset manager Hashkey, which focuses on crypto and blockchain investments, announced that it has closed its third fund at $500 million. The company’s “HashKey Fintech Investment III” is dedicated to developing crypto solutions, blockchain technology, and Web3 concepts.

Hashkey Capital’s Fund III to Focus on Web3, Emerging Markets and Crypto Solutions

Amid the crypto market downturn, global asset manager Hashkey Capital announced the closing of a new fund, “Hashkey Fintech Investment III,” after raising $500 million. According to Hashkey, the fund “received strong support from institutional investors namely sovereign wealth funds, renowned family offices, and corporations.” Hashkey Capital is one of the largest crypto funds in Asia as it manages more than $1 billion in customer assets.

“Hashkey Capital weathered at least three cycles in the industry,” Deng Chao, the head of Hashkey Group Singapore and CEO of Hashkey Capital said in a statement on Tuesday. “From each unique experience, we gained important insights that will allow us to navigate through turbulence. We are one of the few crypto investors that have been granted a license for fund management involving digital assets in Hong Kong, with another approval in principle received for fund management in Singapore,” the CEO of Hashkey Capital added.

Despite the crypto winter, which has shaved $2 trillion off the crypto economy’s net value, investments in the space have continued. For example, while speaking at the World Economic Forum event in Davos, Switzerland, Animoca Brands co-founder Yat Siu said his firm plans to grow its portfolio by 30% by the end of 2023. As for Hashkey’s Fund III, the funds will be “deployed to advance exceptional crypto and blockchain initiatives around the world, focusing on the growing opportunities in emerging markets.”

The Hashkey Fund III announcement adds:

Fund III will provide investors with institutional-grade exposure to all facets of blockchain and crypto technologies. This new fund aims to invest primarily in infrastructures, toolings, and applications that have the potential for mass adoption.

According to Crunchbase, the company has a portfolio of approximately 56 investments to date, including investments in Aztec, Cosmos, Coinlist, Falcon X, Polkadot, and Animoca Brands. In mid-December 2022, the firm’s Hashkey Digital Asset Group (HDAG) partnered with Hong Kong-based ZA International to explore “cooperative opportunities on digital assets, Web3, and distributed ledger technology (DLT), among other areas.” A week prior to partnering with ZA International, HDAG signed a deal with SEBA Bank to “accelerate the adoption of digital assets in Hong Kong and Switzerland.”

How do you see Hashkey Capital’s Fund III positioning itself in the crypto and blockchain industry? Let us know what you think about this subject in the comments section below.