Huobi Founder Li Lin Launches $1B Ether Trust Backed by Asia’s Top Investors
Li Lin Leads New Ether Investment Vehicle
Li Lin, founder of the crypto platform Huobi and chairman of Hong Kong-based Avenir Capital, is leading the creation of a $1 billion Ether (ETH) trust alongside several prominent ahead ETH investors, according to Bloomberg. The initiative is designed as a digital asset trust to accumulate and hold Ether, tapping into a surge in institutional demand for the world’s second-largest cryptocurrency.
People familiar with the matter said Li has partnered with Fenbushi Capital co-founder Shen Bo, HashKey Group CEO Xiao Feng, and Meitu founder Cai Wensheng to establish the vehicle. The group is reportedly in talks to acquire a Nasdaq-listed company to structure the trust, with a formal launch expected within weeks.
Investor Takeaway
Capital Commitments and Structure
The trust has already secured about $1 billion in commitments, including roughly $200 million from Avenir Capital and $500 million from HongShan Capital Group, formerly Sequoia China. Discussions with other institutional investors across Asia are continuing, with additional allocations expected before the official launch.
By structuring the fund through a U.S.-listed company, the group aims to attract global investors while complying with American regulatory requirements. Sources said the acquisition process of the shell firm is in its final stages, paving the way for the trust’s formal registration and market debut.
Industry observers view the vehicle as part of a broader trend among Asian asset managers moving to capture institutional demand for Ether following the approval of U.S. BTC platform-traded funds. ETH has increasingly become a target for fund managers building , particularly as expectations rise for a similar ETH-based ETF in the United States.
Institutional Ether Demand Climbs
Public companies currently hold more than 4.4 million ETH valued at $16.9 billion, according to CoinGecko. The largest holder, BitMine (BMNR.US), controls over $11 billion worth of Ether. The growing underscores a shift toward long-term investment strategies rather than short-term speculation, with companies treating Ether as both a digital commodity and a settlement layer for tokenized finance.
At the time of writing, Ether trades near $3,857, up more than 9% over the past week, according to Nansen data. The rally follows increased institutional flows into ETH-based products and ongoing optimism about the network’s revenue potential from decentralized applications and staking yields.
Li Lin’s Track Record in Digital Assets
Li founded Huobi in 2013 and built it into one of the world’s largest crypto platforms before tradeing the platform to entrepreneur Justin Sun later than China’s 2021 crypto trading ban. The two later became embroiled in legal disputes over branding and control of Huobi Global. Since exiting the platform business, Li has focused on institutional investments through Avenir Capital, which has become one of Asia’s largest holders of BTC ETFs.
Avenir reported holding 16.5 million shares of BlackRock’s iShares BTC Trust (IBIT) in August, valued at several hundred million dollars. The firm has also participated in a $500 million Solana treasury launched in September, reflecting a broader multi-chain investment strategy. By spearheading the Ether trust, Li is extending that model into direct asset accumulation rather than ETF exposure.
Investor Takeaway
Outlook: Asia’s Institutional Play for ETH
The $1 billion vehicle highlights Asia’s growing role in shaping institutional ETH investment. While U.S. asset managers dominate the BTC ETF market, Asian investors are increasingly pursuing private trust structures for Ether accumulation, often leveraging offshore and listed entities for access and compliance.
With backing from some of the region’s earliest ETH adopters, Li’s project could become a template for similar digital asset funds targeting institutional investors viewking regulated, long-term exposure. A formal announcement is expected within two to three weeks, according to people familiar with the plans.
