Digital Asset Treasury: A New Era for Institutional Cryptocurrency Investment
In 2025, the emergence of digital asset treasury (DAT) companies has been a significant trend, capturing the attention of institutional investors eager to expand their engagement with cryptocurrencies like Bitcoin and Ethereum. A notable development in this space involves the founder of Huobi and key early supporters of Ethereum planning to establish a substantial $1 billion digital asset initiative.
New Ethereum Trust Poised to Acquire Nasdaq-Listed Entity
According to a report by Bloomberg dated October 17, Li Lin, the visionary behind the cryptocurrency exchange Huobi, now rebranded as HTX, alongside Avenir Capital’s chairman, is spearheading efforts with prominent figures such as Hashkey Group’s CEO Xiao Feng, Fenbushi Capital’s founder Shen Bo, and Meitu Inc.’s founder Cai Wensheng to create a new digital asset trust. This trust is designed to amass Ethereum (ETH) tokens, providing investors with regulated access to Ethereum and potentially the broader cryptocurrency landscape.
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While cryptocurrency exchange-traded funds (ETFs) have gained traction in the United States, the advent of crypto treasury firms represents a fresh channel for institutional adoption of digital currencies. The report highlights that the team behind this trust is in active discussions to acquire a Nasdaq-listed shell company to facilitate its launch. The initiative has already secured approximately $1 billion in funding, with $200 million from Avenir Capital and $500 million from Asian institutional entities, including Hongshan Capital Group. Although the structure of the Ethereum trust is still being finalized, an official announcement is anticipated within the next few weeks.
Ethereum: The Preferred Choice for Treasury Assets?
This latest initiative adds to the growing number of Ethereum treasury firms, both operational and in the pipeline. Joseph Chalom, co-CEO of Sharplink Gaming, recently asserted that Ether surpasses Bitcoin as a treasury asset, citing its higher volatility and staking potential. Chalom suggests that Bitcoin’s comparatively lower volatility might be attributed to the significant number of coins held passively through exchange-traded funds.
Sharplink Gaming reportedly holds a substantial 840,124 ETH tokens, valued at approximately $3.19 billion at current market rates, underscoring Ethereum’s appeal as a treasury asset.
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