Huobi founder Li Lin is reportedly spearheading a new initiative to establish a $1 billion Ethereum (ETH) trust, aiming to amass a significant ETH treasury. This move could position the trust as one of the largest accumulators of the cryptocurrency.
Li Lin, who also chairs Hong Kong-based Avenir Capital, is collaborating with several prominent investors in Asia. These include Fenbushi Capital co-founder Shen Bo, HashKey Group CEO Xiao Feng, and Meitu founder Cai Wensheng. Together, they've formed a digital asset trust with an aggressive Ethereum accumulation strategy.
According to a Bloomberg report, the fund has already secured approximately $1 billion in commitments. Li Lin is contributing $200 million through Avenir Capital, while multiple Asian institutional investors are reportedly ready to invest $500 million. HongShan Capital Group is among the top firms considering participation in this venture.
The initiative reflects a growing trend of public companies viewing Ether as a potential treasury asset. Li Lin's Avenir Group is already recognized as one of Asia's largest spot Bitcoin exchange-traded funds (ETFs) holders. The Huobi founder's firm has aggressively grown its spot Bitcoin ETFs since 2024, ranking among the largest institutional holders of the asset.
The new Ethereum trust may involve acquiring a Nasdaq-listed company to structure the trust. If launched, the ETH treasury could rank as the fourth-largest public ETH holder, following BitMine, SharpLink, and the Ether Machine. Currently, 70 companies hold ETH on their balance sheets, totaling 5.90 million ETH, which represents almost 5% of the coin's total supply.
This move aligns with the broader market trends toward Ethereum-based treasury products. Joseph Lubin has advocated for Ether as a core asset for corporate balance sheets, while traditional finance players are increasingly tokenizing US treasuries on the Ethereum network. New platforms have emerged since 2024 to facilitate tokenized money market funds on Ethereum, backed by regulated issuers and asset managers.
The initiative represents a significant bet on Ethereum's role in institutional finance, as companies seek enhanced on-chain accessibility and composability for treasury operations.
Despite a recent pullback in Ethereum's price, which has fallen more than 3.5% amid rising U.S.-China trade tensions and concerns over the credit stability of regional U.S. banks, major investors like Tom Lee's BitMine and BlackRock continue accumulating ETH, reinforcing long-term optimism.
Analysts suggest that such large-scale accumulation could stabilize ETH prices and deepen liquidity within global markets. While market sentiment remains mixed, investment bank Citizens forecasts a bullish trajectory, projecting $7,000 by 2026 and $20,000 by 2030.
The group plans to announce the launch of the trust in the coming weeks.
