Li Lin, who started the Huobi crypto exchange in 2013, is organizing a major new investment focused entirely on Ethereum. He’s partnering with some of Asia’s biggest early crypto investors to create a $1 billion fund that will buy and hold large amounts of ETH.
The group has already raised the full billion dollars and plans to make an official announcement within the next few weeks, according to a Bloomberg report published on October 17, 2025.
Who’s Behind the Investment
Li Lin now runs Avenir Capital, a Hong Kong investment firm that manages over $1 billion in assets and has become one of Asia’s largest holders of Bitcoin ETFs. He sold Huobi to entrepreneur Justin Sun in 2021 after China banned crypto trading.
For this new Ethereum project, Li has teamed up with three well-known figures in Asian crypto:
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Shen Bo, who co-founded Fenbushi Capital and was among the first institutional investors in Ethereum projects
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Xiao Feng, CEO of HashKey Group, which was the first company to get Hong Kong’s full virtual asset trading license
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Cai Wensheng, founder of Meitu and one of China’s most recognized crypto investors
These investors were some of the earliest supporters of Ethereum when it launched in 2015. Their involvement signals serious confidence in ETH’s future value.
How the Money Breaks Down
The $1 billion in commitments comes from several sources. Li’s Avenir Capital is putting in $200 million. HongShan Capital Group, formerly known as Sequoia China, committed $500 million. Additional institutional investors across Asia are contributing the remaining funds.
The group plans to buy a company already listed on the Nasdaq stock exchange to structure their fund. This approach gives them a regulated framework that institutional investors prefer. It also makes the fund more transparent and credible compared to private investment vehicles.
Talks to acquire the shell company are ongoing, with the final details expected soon.
Why Major Investors Are Choosing Ethereum
Ethereum has been attracting more institutional money than Bitcoin in recent months. The numbers tell the story clearly.
In the last five trading days of August 2025, Ethereum ETFs pulled in $1.83 billion while Bitcoin ETFs only attracted $171 million. By the third quarter of 2025, Ethereum ETFs held $27.66 billion in total assets under management, actually outpacing Bitcoin ETFs.
What makes Ethereum different? Staking rewards. Ethereum holders earn between 3% and 6% annual returns by staking their ETH, while Bitcoin offers zero yield. For corporate treasuries and institutional investors looking for both growth and income, this makes Ethereum more attractive.
There’s another factor working in Ethereum’s favor: supply dynamics. When you stake Ethereum, those coins get locked up and can’t be sold. Nearly 30% of all ETH is now staked, which reduces the amount available for trading. Large purchases like Li Lin’s $1 billion fund could push prices higher by tightening supply even more.
The Growing Corporate Ethereum Trend
Li Lin’s fund joins a growing list of companies holding Ethereum as a treasury asset. According to CoinGecko data, publicly traded companies currently hold 4,434,707 ETH worth approximately $17.2 billion, representing 3.67% of Ethereum’s total supply.
Source: @WhaleInsider
BitMine leads the pack with over 3 million ETH valued at more than $12 billion, according to recent company disclosures. Other major holders include SharpLink Gaming, The Ether Machine, and Bit Digital. When Li Lin’s fund starts buying, it could become one of the top institutional ETH holders globally.
This represents a shift from earlier patterns where companies focused almost exclusively on Bitcoin. The trend shows that institutions now see Ethereum as more than just a speculative asset. They view it as infrastructure for decentralized finance, tokenized assets, and blockchain-based financial products.
Corporate treasury adoption of Ethereum has accelerated throughout 2025, with institutional buyers recognizing the dual benefits of capital appreciation and staking yields.
Hong Kong’s Role as Asia’s Crypto Gateway
With mainland China maintaining its ban on crypto trading, Hong Kong has positioned itself as the region’s hub for regulated digital asset activity. The city offers a licensing framework that welcomes institutional investors while maintaining oversight.
HashKey Group, one of Li Lin’s partners, was the first firm to obtain Hong Kong’s comprehensive virtual asset service provider licenses. This regulatory clarity makes Hong Kong an attractive base for launching institutional crypto products.
Li’s Avenir Capital has built a strong track record from its Hong Kong headquarters. The firm reported holding 16.5 million shares of BlackRock’s iShares Bitcoin Trust in August 2025. The new Ethereum fund extends Avenir’s strategy into direct asset accumulation rather than just ETF exposure.
Market Outlook and Price Potential
Ethereum currently trades around $3,875, consolidating after recent volatility. However, institutional inflows continue to support the asset, with October 2025 seeing significant ETF activity and corporate buying.
Some analysts have published price targets for Ethereum ranging from $7,000 to $10,000 by the end of 2025, citing growing institutional adoption and staking yields as key drivers. Whether these optimistic projections materialize depends on sustained institutional demand and broader market conditions.
The combination of institutional buying pressure, staking rewards, and reduced available supply creates favorable conditions for price appreciation. However, market volatility remains a constant factor in cryptocurrency investing.
What This Means for Ethereum
The launch of Li Lin’s $1 billion Ethereum fund marks another step in cryptocurrency’s transition from a retail-driven market to an institutional asset class. When experienced investors with decades of traditional finance experience commit hundreds of millions of dollars to a single digital asset, it validates the asset’s staying power.
For now, the crypto world waits for Li Lin’s official announcement, which should provide more details about the fund’s structure, governance, and purchasing strategy. The move reinforces a broader trend: Ethereum is increasingly viewed as a productive asset rather than just a speculative investment, with its utility driving institutional confidence in ways that go beyond Bitcoin’s store-of-value narrative.
