Huobi Founder Backs $1 Billion Ethereum Trust, May Acquire Nasdaq-Listed Company: Report

Li Lin, founder of Huobi and chairman of Hong Kong-based Avenir Capital, is reportedly leading a new $1 billion Ethereum (ETH) trust, teaming up with some of Asia’s most influential early Ethereum investors.

According to a Bloomberg report citing people familiar with the matter, the initiative may involve acquiring a Nasdaq-listed company to structure the trust. Sources said the group has already secured roughly $1 billion in commitments, including about $200 million from Li’s Avenir Capital and $500 million from regional institutional investors such as HongShan Capital Group. 

Li has reportedly partnered with Fenbushi Capital co-founder Shen Bo, HashKey Group CEO Xiao Feng, and Meitu founder Cai Wensheng to form a digital asset vehicle designed to accumulate and hold Ether. Sources indicated that discussions remain ongoing, with a formal announcement expected within the next few weeks. 

The news comes amid a pullback in Ethereum’s price, which has fallen more than 3.5% in the last 24 hours amid rising U.S.-China trade tensions and concerns over the credit stability of regional U.S. banks. Ethereum was trading below $3,800, more than 22% below its August record high of roughly $4,900. Despite the recent decline, retail sentiment on Stocktwits remained in ‘bullish’ territory, accompanied by ‘high’ levels of chatter.

Li founded Huobi in 2013 and grew it into one of the world’s largest cryptocurrency exchanges before selling it to entrepreneur Justin Sun after China’s sweeping 2021 ban on digital asset trading. He subsequently founded Avenir, a Hong Kong-based investment firm managing more than $1 billion in Bitcoin ETFs, making it one of Asia’s largest holders.

The report said the new Ethereum trust is aimed at providing regulated exposure to Ethereum and related assets amid the growing wave of digital asset treasuries (DATs) following the success of Bitcoin exchange-traded funds in the US. 

Read also: Bitcoin Falls Below $105,000, Pulling MSTR Lower – XRP And Solana Drop Amid Banking Jitters

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