Huobi founder Li Lin is launching a $1 billion Ether trust, uniting top Asian crypto investors to build a regulated digital asset vehicle aimed at institutional adoption.
Key Takeaways
- Li Lin’s Avenir Capital has secured $700 million in commitments for a new $1 billion Ether trust.
- The trust is backed by major Ethereum pioneers including Shen Bo, Xiao Feng, and Cai Wensheng.
- The team is in talks to acquire a Nasdaq-listed company to structure the trust for regulatory clarity.
- The initiative mirrors growing institutional interest in Ether following Bitcoin ETF success.
What Happened?
Li Lin, founder of crypto exchange Huobi and chairman of Avenir Capital, is leading an ambitious plan to launch a $1 billion Ether-focused digital asset trust. Teaming up with prominent Asian crypto pioneers, the new venture is designed to accumulate and manage Ethereum (ETH) holdings through a regulated and structured financial entity. The move follows the institutional wave that embraced Bitcoin ETFs and aims to bring similar traction to Ether.
💥BREAKING:
— Crypto Rover (@rovercrc) October 17, 2025
HUOBI FOUNDER LI LIN TO LAUNCH $1B ETHEREUM TREASURY COMPANY! pic.twitter.com/RMh3wvvTRf
A High-Profile Collaboration of Ethereum Veterans
The trust is supported by a powerhouse of early Ethereum investors and crypto industry leaders:
- Shen Bo, co-founder of Fenbushi Capital, which once counted Vitalik Buterin as a founding member.
- Xiao Feng, CEO of HashKey Group, who recently partnered with Buterin in launching the Ethereum Applications Guild.
- Cai Wensheng, founder of Meitu, known for its early crypto treasury moves and large Bitcoin holdings.
These backers are pooling resources and influence to create a vehicle for large-scale ETH accumulation, aiming to serve institutional clients with a robust and compliant structure.
Structuring for Scale: Nasdaq Acquisition in Focus
A unique aspect of this venture is the group’s intent to acquire a Nasdaq-listed company to help structure and launch the trust. This approach is expected to boost regulatory credibility and enhance the trust’s appeal to risk-conscious institutional investors.
While the exact target company has not been disclosed, discussions are active, and a formal announcement is expected soon. The move positions the trust to mirror the operational and legal transparency seen in U.S.-based crypto ETFs.
Funding Breakdown and Institutional Backing
The team has already secured $700 million out of the $1 billion target, with the breakdown as follows:
- $200 million from Li Lin’s Avenir Capital.
- $500 million from regional institutional players like HongShan Capital Group.
Avenir Capital, headquartered in Hong Kong, is already a major force in Asia’s crypto market, managing over $1 billion in digital assets, including large stakes in Bitcoin ETFs.
Ether’s Rising Appeal Among Institutions
Data from CoinGecko shows 14 publicly traded companies currently hold 4.4 million ETH worth approximately $16.9 billion. Leading the pack is BitMine, with over $11 billion in Ether holdings.
This surge in Ether accumulation parallels the trend seen with Bitcoin earlier this year, where ETFs helped validate and scale institutional participation. With the new trust, Li Lin and partners hope to replicate that success for Ethereum, providing a regulated path for investors to gain long-term exposure to the second-largest cryptocurrency by market cap.
CoinLaw’s Takeaway
I think this is a big moment for Ethereum. We’ve seen Bitcoin win institutional trust through ETFs, and now Ethereum is clearly next in line. What stands out to me is how Asia’s most respected crypto veterans are uniting on this. It’s not just about launching another fund. They’re positioning Ether as a strategic asset, and they’re doing it with massive financial backing and a real regulatory play by targeting a Nasdaq acquisition.
In my experience, when big money aligns with thoughtful structure and credibility, the rest of the market usually follows. This trust isn’t just a bet on Ethereum. It’s a signal that ETH is moving from tech culture to mainstream finance. If they pull this off, it could be a game changer not just for Ether, but for digital asset investment overall.
