Former HTX Founder Collaborates with Ethereum Pioneers on $1 Billion Institutional Investment Trust

Li Lin, the visionary founder of HTX (formerly Huobi), has taken a significant step toward advancing Ethereum’s institutional appeal with the creation of a $1 billion Ethereum-based regulated investment trust. This groundbreaking effort, undertaken in partnership with key early Ethereum investors, reflects a strategic push to attract global institutional capital to the second-largest blockchain network. According to international media reports dated October 17, this initiative stands as one of Asia's most ambitious contributions to Ethereum asset management.

Prominent Collaborators Drive Institutional Initiative

In a move to consolidate industry expertise, the investment trust has welcomed influential figures from the blockchain and digital asset arena. Collaborators include Shen Bo, co-founder of the renowned Fenbushi Capital; Xiaopeng, CEO of HashKey Group; and Cai Wensheng, founder of Meitu. Together, they aim to meet the rapidly escalating demand for secure, regulated exposure to Ethereum and its ecosystem from institutional investors.

The trust will focus on Ethereum and associated assets, providing a regulated entry point for hedge funds, asset managers, and other institutional entities looking to deepen their involvement in digital assets. The consortium’s initiative signifies a broader shift toward legitimizing blockchain investments via regulation and trust-driven frameworks.

Institutional Ethereum Adoption Catalyzed by Post-Bitcoin ETF Success

Interest and momentum surrounding this Ethereum-focused trust have surged, largely fueled by the successful incorporation of Bitcoin exchange-traded funds (ETFs) into mainstream institutions. The growing appetite among institutional players for Ethereum aligns with this expansion, making the timing perfect for an investment vehicle specifically tailored to capitalize on Ethereum’s utility and potential.

While the project remains in developmental stages, the consortium has already secured capital commitments totaling $1 billion. Of this, Li Lin’s own Avenir Capital contributed $200 million, underpinning his confidence in Ethereum’s long-term viability. Additionally, $500 million has been sourced from major institutional entities across Asia, including Hongshan Capital Group. To further enhance the project’s structural integrity, the consortium is actively investigating acquisition strategies involving Nasdaq-listed shell companies.

Insiders confirm that the remaining operational intricacies are being refined. A formal announcement detailing the trust’s structure and launch timeline is anticipated within the next two to three weeks.

Competing with Established Ethereum Investment Titans

Upon its introduction, this trust is poised to enter competition with leading institutional Ethereum investment solutions, such as Grayscale’s Ethereum Trust, alongside offerings by industry giants like Bitmain and Sharplink Gaming. Should its strategic implementation proceed seamlessly, the trust could become a transformative player within the Ethereum asset management domain, carving out significant traction and market recognition.

Li Lin’s Transition and Avenir Capital’s Expanding Influence

Li Lin’s professional journey underscores his adaptability and commitment to innovation in the blockchain space. In 2021, he famously sold his stake in Huobi to Justin Sun of Tron, exiting the platform amid China’s crackdown on cryptocurrency trading. Since then, he has directed his efforts toward institutionalization, operating Avenir Capital. The firm, now a powerhouse in Asia’s Bitcoin ETF landscape, manages more than $1 billion in assets and maintains a strong influence in blockchain-driven fund management.

The $1 billion Ethereum trust initiative mirrors the accelerating adoption of digital assets across institutional channels. Ethereum, with its extensive smart contract capabilities and burgeoning utility, is increasingly viewed as a pivotal technology for the future of financial infrastructure. This latest effort by Li Lin and his collaborators underscores the broader institutional momentum surrounding blockchain’s integration into mainstream global finance.