Ethereum Treasury Craze Continues: Huobi Founder Named In $1B DAT Firm Launch: Report

Markets 2025-10-20 09:52

The launch of digital asset treasury (DAT) companies has been one of the most consistent themes of 2025, with institutional players exploring new avenues to increase their exposure to cryptocurrencies, including Bitcoin and Ethereum. In the latest development, Huobi founder and some notable Ethereum early-day backers are looking to launch a $1 billion digital asset vehicle.

Planned ETH Trust In Talks To Acquire Nasdaq-Listed Firm

According to an October 17 report by Bloomberg, Li Lin, founder of cryptocurrency exchange Huobi (now known as HTX) and chairman of investment firm Avenir Capital, and some of Asia’s earliest Ethereum backers are planning to launch a new digital-asset trust that will accumulate ETH tokens. This effort includes Hashkey Group CEO Xiao Feng, Fenbushi Capital founder Shen Bo, and Meitu Inc. founder Cai Wensheng, as revealed by the people familiar with the matter.

The digital asset treasury vehicle aims to offer investors regulated exposure to Ethereum and, ultimately, the larger cryptocurrency market. While crypto-linked exchange-traded funds (ETFs) have been a large success in the United States, crypto treasury firms have come on as the latest pathway to institutional adoption of digital assets.

The Bloomberg report disclosed that the group behind this trust is currently having discussions about acquiring a Nasdaq-listed shell company to facilitate the vehicle launch. According to the cited sources, the project has already raised about a total of $1 billion, including $200 million from Avenir Capital and $500 million from Asian institutional players such as Hongshan Capital Group.

With the discussions around the structure of the Ethereum trust still ongoing, the people familiar with the matter said the details of the venture could still change before launch. Meanwhile, an announcement on the treasury launch is expected to arrive in the coming two to three weeks.

Is Ethereum The ‘Treasury King’?

This newest venture would represent another one in the rich list of already-launched and waiting-to-be-launched Ethereum treasury firms. Joseph Chalom, co-CEO of Sharplink Gaming, recently called Ether the superior treasury asset compared to Bitcoin.

Chalom tied his claim of Ethereum being the better treasury asset due to its higher volatility and staking capability. According to the Sharplink co-CEO, Bitcoin’s relative lower volatility might be due to more coins being held (without trading) through exchange-traded funds.

According to a recent report, Sharplink Gaming boasts a holding of 840,124 ETH tokens, valued at approximately $3.19 billion at the current market price.

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This content is for informational purposes only and does not constitute investment advice.

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