Ethereum Treasury Boom Accelerates as $1B Investment Initiative Gains Momentum—Huobi Founder Among Key Backers
The surge in digital asset treasury (DAT) initiatives continues to dominate headlines in 2025, as institutional investors deepen their involvement in the crypto economy. The latest development sees a constellation of influential figures—including Huobi exchange founder Li Lin—joining forces to launch a $1 billion Ethereum-focused investment trust.
According to a Bloomberg report dated October 17, Li Lin, now chairman of Avenir Capital, is spearheading the initiative alongside some of Asia’s earliest and most influential Ethereum supporters. These include Xiao Feng, CEO of Hashkey Group; Shen Bo, founder of Fenbushi Capital; and Cai Wensheng, the entrepreneur behind Meitu Inc.
The goal of this new digital asset trust is to provide regulated exposure to Ethereum, appealing to institutional players seeking a more structured entry into the crypto space. Unlike crypto ETFs, which have seen massive adoption in the United States, DATs offer a more direct and strategic accumulation of assets like ETH, often with broader governance models and longer-term holding strategies.
In a strategic move to fast-track the trust’s launch, the group is reportedly in talks to acquire a shell company already listed on the Nasdaq. This reverse merger strategy could allow the initiative to bypass the lengthy process of a traditional IPO, offering a quicker path to market presence. Sources familiar with the matter revealed that the fund has already secured over $1 billion in commitments. Of this amount, $200 million comes directly from Avenir Capital, while an additional $500 million was contributed by major Asian institutional investors, including the Hongshan Capital Group.
While the structure of the trust is still under negotiation, insiders suggest that the project is expected to be formally announced within the next two to three weeks. The move comes amid a broader trend in which Ethereum, not Bitcoin, is increasingly being positioned as the preferred treasury asset among sophisticated investors.
Joseph Chalom, co-CEO of Sharplink Gaming, recently stated that Ethereum holds a stronger case as a treasury holding than Bitcoin. He cited Ethereum’s staking mechanism and higher market volatility as reasons why it offers greater yield potential and strategic flexibility. In contrast, Bitcoin’s relatively lower price swings are attributed to a growing portion of supply being locked in long-term ETF holdings, reducing liquidity and active circulation.
Sharplink Gaming itself has made a bold bet on Ethereum, reportedly holding over 840,000 ETH—valued at more than $3.1 billion at current prices. This level of commitment underscores the confidence that major players have in Ethereum’s long-term utility and financial performance.
The growing popularity of Ethereum-based DATs reflects a shift in institutional sentiment. Previously, Bitcoin was often viewed as the go-to digital asset for treasuries due to its perceived stability and dominant market position. However, Ethereum’s broader functionality, including smart contracts and staking, is positioning it as a more dynamic and income-generating alternative.
As treasury adoption models evolve, digital asset trusts could play a central role in how institutions hold and manage crypto assets. These vehicles not only offer exposure to price appreciation but also enable participation in network consensus and governance processes, especially with assets like Ethereum that support staking.
Furthermore, the regulatory landscape is gradually becoming more accommodating. While the U.S. has embraced Bitcoin ETFs, other jurisdictions are exploring frameworks that would allow similar investment products for Ethereum and other altcoins. This regulatory progress is likely to fuel further growth in DATs, particularly as institutional investors seek compliant and risk-mitigated entry points into the digital asset universe.
From a strategic standpoint, the use of Ethereum as a treasury asset also enables investors to align with decentralized finance (DeFi) protocols, potentially unlocking additional layers of yield and utility. As Ethereum transitions to a deflationary model post-merge, scarcity dynamics coupled with staking yields offer compelling reasons for treasuries to favor ETH over BTC.
The involvement of high-profile names like Li Lin and Hashkey’s Xiao Feng lends substantial credibility to the new trust. Their presence signals not just confidence in Ethereum’s future, but also in the viability of DATs as a mainstream financial instrument.
Looking ahead, the buildout of Ethereum-based treasury vehicles could reshape the crypto investment landscape. As more capital flows into these structures, the underlying protocols may benefit from increased security, liquidity, and long-term price support. This trend is likely to accelerate as global institutions seek new diversification strategies amid macroeconomic uncertainty and diminishing returns in traditional asset classes.
In conclusion, the $1 billion Ethereum trust initiative is more than just another crypto fund—it represents a paradigm shift in how digital assets are perceived and utilized by heavyweight financial entities. With institutional adoption reaching new heights, Ethereum’s role as a foundational pillar of the digital economy seems more secure than ever.