Huobi Founder and Top Crypto Elites Unveil $1 Billion Ethereum Trust Initiative

Huobi Founder Li Lin and Top Crypto Leaders Announce $1 Billion Ethereum Trust Initiative

Ethereum (ETH) is poised for a potential institutional surge as Asia’s prominent cryptocurrency leaders move to establish a $1 billion Ether Trust Strategy. According to multiple industry reports, Huobi founder Li Lin is partnering with a coalition of influential crypto figures—including Fenbushi Capital’s Shen Bo, HashKey CEO Xiao Feng, and Meitu founder Cai Wensheng—to create a structured investment vehicle aimed at accumulating ETH at scale. This initiative highlights the growing confidence in Ethereum among institutional investors in Asia and may reshape the market dynamics for one of the world’s leading digital assets.

A Strategic Move by Asia’s Crypto Elites

Li Lin, now chairman of investment firm Avenir Capital, has reportedly rallied $1 billion in commitments for the new Ether Trust. Bloomberg reports indicate that Li Lin’s partners in the venture include high-profile names in the crypto and blockchain ecosystem: Shen Bo of Fenbushi Capital, Xiao Feng of HashKey, and Cai Wensheng, founder of Meitu, a digital technology company. The trust will operate through a Nasdaq-listed shell company, providing institutional investors with a regulated and transparent channel for Ether accumulation.

The fundraising effort itself has seen substantial backing, including $500 million from HongShan Capital Group and $200 million from Avenir Capital. The trust is expected to be formally announced in the coming weeks. Organizers have emphasized that the goal is not only to create a compliant institutional vehicle but also to steadily acquire Ethereum, responding to rising institutional demand for ETH exposure.

Li Lin: From Huobi Founder to Institutional Leader

Li Lin is a well-known figure in the cryptocurrency industry, having founded Huobi in 2013, one of the world’s earliest and largest cryptocurrency exchanges. Today, Huobi operates as HTX, a Seychelles-based trading platform. Lin sold his majority stake to an entity affiliated with Justin Sun in 2023, but legal disputes have followed. Lin filed a copyright infringement lawsuit in Hong Kong, claiming that the exchange continued to use the “Huobi Global” brand without proper authorization, despite his company X-Spo retaining ownership of the trademark.

This new initiative marks a shift in Lin’s focus from retail exchange operations to structured institutional investment. By leveraging his industry connections and reputation, Lin is positioning himself at the forefront of Ethereum accumulation strategies in Asia, an increasingly important market for crypto investments.

Ethereum’s Institutional Appeal

The establishment of a $1 billion Ether Trust underscores Ethereum’s growing adoption among institutional investors. Ethereum has long been recognized not only as a digital currency but also as a robust platform for decentralized finance (DeFi), non-fungible tokens (NFTs), and enterprise blockchain applications. As regulatory clarity increases and institutional appetite for crypto continues to grow, vehicles like the Ether Trust make it easier for professional investors to gain significant exposure to ETH without navigating retail exchanges.

If the fund scales as planned, it could become one of the largest institutional ETH accumulation vehicles globally, rivaling holdings managed by BitMine, SharpLink Gaming, and the Grayscale Ethereum Trust. Such a development could significantly influence the ETH market, particularly if the trust accumulates coins during periods of price volatility.

Current Market Context

Ethereum’s price has been under $4,000 following a recent market correction, creating what some analysts consider an attractive accumulation point. Notably, Tom Lee, a prominent crypto analyst, has suggested that ETH could potentially outperform Bitcoin in market capitalization, comparing the scenario to the post-1971 gold and equities markets. Lee argued that Ethereum’s utility and adoption trends make it a strong candidate for institutional accumulation.

Major holders of Ethereum are also actively reshaping their positions. BitMine continues to purchase large volumes of ETH, while SharpLink Gaming has strategically liquidated shares at a premium to expand its treasury and diversify holdings. Currently, Bitcoin-related entities hold the largest ETH positions, with 3,032,188 tokens valued at approximately $12.26 billion. SharpLink Gaming ranks second, holding 840,120 ETH worth $3.4 billion.

Strategic Implications for Investors

The creation of the Ether Trust not only provides a new investment avenue but also signals increasing institutional confidence in Ethereum’s long-term potential. For professional investors and high-net-worth individuals in Asia, the trust offers a regulated, transparent, and compliant mechanism to accumulate ETH without directly managing wallets or navigating exchange volatility.

Additionally, the trust’s establishment highlights a broader trend: institutional investors are increasingly seeking regulated vehicles to access digital assets. Similar initiatives are being observed in North America and Europe, where crypto-focused investment funds and ETFs are offering professional investors exposure to Bitcoin, Ethereum, and other leading tokens. By following this model in Asia, Li Lin and his partners are bridging the gap between traditional finance and the emerging blockchain economy.

Future Outlook

As Ethereum adoption continues to grow across DeFi, NFT, and enterprise applications, institutional demand is expected to accelerate. The $1 billion Ether Trust could serve as a catalyst for further market participation by professional investors, driving liquidity, and potentially influencing ETH price movements.

Experts note that institutional accumulation strategies tend to reduce supply pressure on exchanges, which can have upward effects on asset prices over time. Furthermore, the creation of regulated funds improves investor confidence, as market participants gain assurance of compliance and transparency.

While retail traders continue to navigate daily market fluctuations, large-scale institutional initiatives like this one underscore the dual narrative of crypto markets: retail enthusiasm paired with growing professional, regulated participation. Ethereum’s ecosystem, already vast and diverse, could see additional capital inflows and strategic investment as a result.

Conclusion

The $1 billion Ether Trust, spearheaded by Huobi founder Li Lin and supported by key figures such as Shen Bo, Xiao Feng, and Cai Wensheng, represents a significant institutional endorsement of Ethereum. Beyond its immediate impact on ETH accumulation, the trust signals the maturation of the crypto market in Asia and the region’s growing influence in the global digital asset landscape. As institutional vehicles become increasingly prominent, Ethereum may continue to solidify its role as a foundational asset in both decentralized finance and professional investment portfolios.

For investors, enthusiasts, and market observers, the launch of this trust offers insights into where institutional confidence is heading and highlights the importance of Ethereum as a core digital asset for long-term growth.

Source: news

Disclaimer

The content published on nyohoka.com is for informational and educational purposes only. It should not be considered as financial, investment, trading, or legal advice. Cryptocurrency and digital asset investments carry a high level of risk and may not be suitable for all investors.

We do not guarantee the accuracy, reliability, or completeness of the information provided. nyohoka.com and its authors are not responsible for any losses or damages that may arise from the use of this content.

Always do your own research (DYOR) and consult with a qualified professional before making any financial decisions.