DeutschHuobi founder Li Lin launches a new multi-billion dollar Ethereum reserve. He is supported by a group of experienced Asian crypto veterans. The new concept is intended to lead to the creation of an Ethereum treasury company. Now they want to acquire a NASDAQ company. The initial capital is one billion US dollars.
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Huobi Founder Launches Multi-Billion Dollar Ethereum Reserve
Huobi founder Li Lin is launching a multi-billion dollar Ethereum reserve – Bloomberg recently explained in a report. The concept is being realized through a new company that acts as an Ethereum treasury company.
To this end, Lin joined forces with crypto investors Shen Bo and Cai Wensheng, as well as Xiao Feng, the managing director of Hashkey Group. Together, the group wants to take over a listed company to which the new concept will then be applied.
The focus is on an unspecified company that is already listed on the NASDAQ. So far, funds totaling one billion US dollars have been raised, which can be invested in the company.
Although Ethereum is to be the focus of the new crypto player, they are also open to “related investments”. The Bitcoin has become increasingly popular as a corporate reserve since 2020. At the same time, more and more Bitcoin treasury companies are emerging, attracting investors simply through their role as a Bitcoin proxy investment.
After the concept surrounding BTC was so successful, it is now spreading to other cryptocurrencies. Internationally, there are already 14 publicly traded, institutional Ethereum investors. Their concept is to acquire as many Ether as possible in order to profit from the future price development of the cryptocurrency.
Li Lin’s new ETH company is expected to launch in the next two to three weeks, according to insider information.
Institutional Interest is Declining: ETH is Losing Investors
The new commitment of the group around the Huobi founder comes at a surprising time. Most recently, institutional interest has declined significantly – at least in the US market.
Bitcoin ETFs and Ethereum funds have recorded a significant downward trend over the past few weeks. Both investments reached their previous peak on October 6th. Ethereum ETFs managed a total of 32 billion US dollars on this day. Today it is only 26.83 billion US dollars – a decline of more than 16 percent.
Some investors fled the market after a trade conflict between the USA and China increased again. After China announced export controls on rare earths, Trump threatened Chinese goods with additional import duties of 100 percent.
Because the status quo of the economy is threatened, some investors then said goodbye to the crypto market, as they consider it too risky during uncertain times.
The Asian crypto veterans around Lin are unimpressed by this development. Lin himself has already secured an investment of 200 million US dollars for his new project, which comes from his investment company Avenir Capital. A further 500 million are to flow from the HongShan Capital Group. These total 700 million US dollars are part of the mentioned initial capital, which is one billion US dollars.
