Huobi Founder Li Lin to Lead $1B Ether Treasury Firm

TLDR

Li Lin’s new $1B Ether trust secures $700M from Avenir Capital and other players.
The trust is structured to target growing institutional interest in Ether.
Prominent Ethereum investors back the $1B trust led by Huobi’s Li Lin.
Avenir Capital’s $1B trust project eyes a Nasdaq-listed company acquisition.

Li Lin, the founder of Huobi and chairman of Avenir Capital, is leading an ambitious project to create a $1 billion trust focused on accumulating Ether (ETH). The new venture, backed by prominent early Ethereum investors, aims to capitalize on growing institutional interest in Ether, similar to the success seen with Bitcoin exchange-traded funds (ETFs). This initiative has already secured substantial commitments, with discussions ongoing regarding the trust’s official launch.

Collaboration with Key Ethereum Investors

Li Lin is collaborating with several influential figures in the crypto space, including Shen Bo, co-founder of Fenbushi Capital, Xiao Feng, CEO of HashKey Group, and Cai Wensheng, the founder of Meitu. These individuals are well-known for their early investments in Ethereum and play crucial roles in the new project. Their expertise and connections in the crypto industry are expected to provide significant value as they focus on accumulating Ether for the trust.

The group is also exploring potential ways to structure the trust, with talks in progress to acquire a Nasdaq-listed company to facilitate its operations. This step is designed to provide greater regulatory clarity and credibility to the venture, which aims to attract institutional investors interested in exposure to Ether. A formal announcement is expected soon, with the trust’s launch anticipated in the coming weeks.

Funding and Institutional Backing

The venture has already secured impressive financial commitments, amounting to around $1 billion. Of this, Avenir Capital, led by Li Lin, has contributed $200 million. Additionally, institutional players such as HongShan Capital Group have committed $500 million to the project. These investments highlight the growing confidence in Ether and the increasing demand for investment vehicles that offer exposure to the cryptocurrency.

The interest from institutional players reflects the broader trend of growing institutional participation in the digital asset space. Public companies currently hold significant amounts of Ether, with data from CoinGecko showing over 4.4 million ETH held by 14 publicly listed companies, valued at approximately $16.9 billion. This surge in institutional interest aligns with the increasing adoption of Ethereum as a key blockchain platform.

The Growing Appeal of Ether and Crypto Investment

The launch of this $1 billion trust comes at a time when digital asset managers are keen to capture institutional interest in Ether. This follows the success of Bitcoin ETFs, which have provided a regulated pathway for institutional investors to gain exposure to Bitcoin.

As Ether’s role in the crypto ecosystem continues to expand, more institutions are seeking ways to invest in the asset, fueling demand for products like the one being developed by Li Lin and his team.

Li Lin’s previous experience with Huobi, a major crypto exchange, and his current role at Avenir Capital, a leading player in Asia’s crypto space, position him well to lead this new initiative. Avenir Capital has already established itself as one of the largest holders of Bitcoin ETFs in the region, managing over $1 billion in assets.

Strategic Positioning for Future Growth

The success of this Ether trust could have long-term benefits for the investors involved. The project is designed not only to accumulate Ether but also to position its backers at the forefront of institutional crypto investment. With growing regulatory clarity and increasing institutional interest, the trust could become a key player in the expanding digital asset landscape.

As talks continue and the launch date approaches, the market will likely keep a close eye on developments. The venture’s structure, financial backing, and involvement of prominent figures in the crypto space signal its potential to become an important vehicle for institutional investment in Ether.

The post Huobi Founder Li Lin to Lead $1B Ether Treasury Firm appeared first on CoinCentral.

Crypto Pulpit