Hong Kong-based HashKey Group said it launched a $500 million investment fund targeting digital asset treasuries (DATs), initially focusing on exposure to Bitcoin and Ether’s price performance.
The fund is structured as a perpetual, institutional-only vehicle allowing regular subscriptions and redemptions, similar to an open-ended crypto hedge fund, HashKey said in a statement. Unlike a passive exchange-traded fund (ETF), HashKey’s fund is designed to invest in projects and companies deploying DAT strategies.
The launch comes after Nasdaq announced enhanced scrutiny of listed companies’ crypto holdings on Thursday, a move HashKey framed as signaling a “survival of the fittest” stage for the industry.
HashKey said the DAT initiative is part of a broader effort to bridge traditional finance and crypto assets.
“Compared with passive ETF products, DAT is more aligned with the around-the-clock, high-volatility nature of the crypto market” the company said.
HashKey has over HK$12 billion ($1.5 billion) in clients’ assets under management, according to its latest quarterly report.
The company also operates licensed exchanges, ETFs and an Ethereum layer-2 chain. In April, HashKey expanded its institutional offerings by launching Asia’s first XRP tracker fund.
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Hong Kong leads crypto regulation, innovation in China
Hong Kong has moved to position itself as a hub for institutional crypto, giving companies like HashKey a regulatory base to launch large-scale investment products.
In April 2024, the city became the first in Asia to approve spot Bitcoin (BTC) and Ether (ETH) ETFs as local regulators clarifying that Ether was not a security, providing a level of certainty that was still absent in the United States at the time.
In June 2025, authorities expanded the framework to allow crypto derivatives trading for professional investors and adjusted tax rules to attract digital asset funds and family offices. The new policies were outlined in Hong Kong’s second virtual asset policy statement.
Also in June, Hong Kong rolled out its LEAP framework, paving the way for licensed stablecoin issuance, along with tokenized bonds and broader RWA tokenization to connect digital assets with real-world applications.
By July, Hong Kong had completed a third issuance of tokenized green government bonds, signaling an intent to make digital bond issuance a routine feature of public finance.
Against this backdrop of expanding regulation and product launches, Asian family offices have also increased their crypto allocations. A July report found that some allocate up to 5% of their portfolios to digital assets.
While Hong Kong pushes ahead with ETFs, derivatives and tokenization frameworks, mainland China has focused on its state-backed digital yuan. Pilots for the digital yuan began in 2020 and have since expanded into public transit, retail payments and air travel.
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