Li Lin plans to establish a $1 billion Ethereum asset management company

According to Bloomberg, citing sources familiar with the matter, several prominent figures in the Asian blockchain industry, including former Huobi founder Li Lin, Fenbushi Capital co-founder Shen Bo, HashKey Group CEO Xiao Feng, and Meitu founder Cai Wensheng, are collaborating to establish a digital asset trust fund focused on Ethereum (ETH).

The fund, with a target size of approximately $1 billion, aims to systematically accumulate and hold ETH for the long term, further solidifying institutional investors' presence in the crypto asset space. Sources revealed that the fund team is actively in talks to acquire a Nasdaq-listed shell company to leverage its listing structure to facilitate the trust fund's structure.

This type of transaction has become a common path for the institutionalization of crypto assets in recent years, helping to enhance transparency and compliance in fund operations. Regarding fundraising, the project has reportedly secured approximately $1 billion in commitments.

Avenir Group, an investment entity under Li Lin, plans to invest $200 million, while several prominent Asian institutional investors, including Sequoia Capital, have pledged approximately $500 million.

Several sources familiar with the matter emphasized that negotiations are still ongoing, and specific details of the plan are subject to adjustment based on market and regulatory conditions.

If all goes well, the fund is expected to be officially announced within the next two to three weeks. This development reflects Asian capital's strong recognition of the long-term value of Ethereum and digital assets, and also demonstrates that the crypto asset sector is accelerating its evolution towards institutionalization and regulatory compliance.