Huobi Founder Raises $1B for Ethereum Investment Trust

Li Lin, the founder of cryptocurrency exchange Huobi and chair of investment company Avenir Capital, has reportedly raised about $1 billion as part of a sophisticated strategy to accumulate Ethereum (ETH). According to Bloomberg’s Friday report, this substantial capital raise represents one of the most significant dedicated Ethereum investment vehicles in the cryptocurrency space, signaling growing institutional confidence in the world’s second-largest cryptocurrency by market capitalization.

The funding structure reveals substantial backing from major financial players, with HongShan Capital Group contributing $500 million and Avenir Capital providing $200 million toward the $1 billion total. This substantial capital injection demonstrates the serious institutional interest in Ethereum as an asset class and reflects the growing maturity of cryptocurrency investment vehicles that can attract traditional venture capital at scale.

The trust will operate through a Nasdaq-listed shell company, providing a regulated framework for institutional investors seeking exposure to Ethereum. This structure offers potential advantages in terms of regulatory compliance, transparency, and accessibility for traditional investors who may be hesitant to engage directly with cryptocurrency exchanges or decentralized platforms.

Li Lin has assembled a formidable consortium of Chinese cryptocurrency industry leaders to support this ambitious Ethereum accumulation strategy. The partnership includes Fenbushi Capital co-founder Shen Bo, whose firm has been a pioneering force in blockchain investment since 2015. Also joining the initiative is HashKey Group CEO Xiao Feng, bringing extensive experience in digital asset management and blockchain technology infrastructure.

Meitu founder Cai Wensheng’s participation adds another layer of credibility to the venture, given his company’s early and public embrace of cryptocurrency investments. Meitu made headlines in 2021 when it announced significant purchases of Bitcoin and Ethereum, establishing the company as one of the first publicly-traded firms in Asia to allocate treasury funds to digital assets.

This collaboration represents a convergence of expertise across cryptocurrency exchange operations, venture capital, blockchain infrastructure, and corporate adoption. The combined experience of these industry veterans suggests a sophisticated approach to Ethereum accumulation that leverages their collective market knowledge and network influence.

The timing of this $1 billion Ethereum trust launch comes at a pivotal moment for institutional cryptocurrency adoption. With prominent Ether supporters backing the initiative, the trust could significantly impact Ethereum’s market dynamics by creating substantial buying pressure and potentially reducing circulating supply through long-term accumulation strategies.

The use of a Nasdaq-listed shell company structure represents an innovative approach to bridging traditional finance with cryptocurrency markets. This method provides institutional investors with familiar regulatory frameworks and reporting standards while gaining exposure to Ethereum’s potential growth, potentially opening the door for more conservative capital to enter the crypto space.

According to the Bloomberg report, the group plans to formally announce the trust launch within two to three weeks, setting the stage for what could become a benchmark for future institutional cryptocurrency investment vehicles. The successful $1 billion capital raise demonstrates that despite market volatility, sophisticated investors remain committed to building substantial positions in leading cryptocurrencies like Ethereum.