HashKey Group, based in Hong Kong, has announced plans to launch a significant fund aimed at bridging traditional finance with cryptocurrency markets, targeting over $500 million in its initial phase. This Digital Asset Treasury (DAT) fund focuses on investments in Bitcoin and Ethereum projects, structuring itself as a perpetual vehicle that allows for continuous subscriptions and redemptions. The fund aims to provide a compliant means for institutions to partake in the crypto sector while fostering investment in public blockchain ecosystems like Ethereum. However, observers highlight potential risks, including conflicts of interest and managerial risks associated with its operational structure. Analysts note DAT funds occupy a unique position akin to ETFs but with layered complexities in their exposure and risk management, potentially offering a balance between operational flexibility and investor security. HashKey's initiative reflects a growing trend among institutional investors toward cryptocurrency, supported by Hong Kong's favorable regulatory environment compared to the more fragmented and scrutinized landscape in the U.S.

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