Huobi Founder Li Lin Secures $1 Billion with Associates to Acquire Ethereum

Li Lin, the founder of Huobi, has collaborated with some of Asia’s pioneering Ethereum supporters to establish a $1 billion digital asset trust focused on acquiring Ether (ETH).

Key Takeaways:

• Li Lin and notable Asian cryptocurrency investors have secured $1 billion to create a digital asset trust centered on Ether.
• The trust features significant investors such as HongShan Capital and Avenir Capital.
• This initiative seeks to leverage the increasing institutional interest in Ethereum.

Li, who also leads Avenir Capital, is partnering with Shen Bo, co-founder of Fenbushi Capital; Xiao Feng, chairman and CEO of HashKey Group; and Cai Wensheng, the founder of the photo-editing application Meitu Inc. and a prominent crypto investor in China, as reported by Bloomberg, citing sources familiar with the situation.

Huobi Founder’s $1B Ether Trust Approaches Launch

The consortium intends to organize the Ether trust through a Nasdaq-listed shell company, thereby creating a regulated environment for institutional involvement.

The initiative has reportedly raised approximately $1 billion, which includes $500 million from HongShan Capital Group (previously known as Sequoia China) and $200 million from Li’s Avenir, according to sources who requested anonymity due to the confidential nature of the discussions.

An official announcement is anticipated in the coming weeks.

The trust aims to provide regulated access to Ether and associated digital assets, coinciding with a surge in institutional interest in cryptocurrency following the success of US spot Bitcoin ETFs.

This strategy positions Li’s group to meet the increasing investor appetite for Ethereum-based financial products as the market looks forward to the approval of spot Ether ETFs in key jurisdictions.

NEW: HUOBI FOUNDER LI LIN TO LAUNCH $1B $ETH TRUST WITH EARLY $ETH INVESTORS pic.twitter.com/Yt439nUVrL

— The Wolf Of All Streets (@scottmelker) October 17, 2025

Li, who established Huobi in 2013, transformed it into one of the leading exchanges globally before selling it to entrepreneur Justin Sun following China’s crypto ban in 2021.

He subsequently founded Avenir Capital, a Hong Kong-based investment firm that has emerged as one of Asia’s largest holders of Bitcoin ETFs, managing over $1 billion in assets.

The partners, Shen, Xiao, and Cai, represent the initial wave of Chinese crypto entrepreneurs who began investing in Ethereum shortly after its launch in 2015.

Shen’s Fenbushi Capital supported several early blockchain initiatives; Xiao’s HashKey was among the first to obtain a virtual asset trading license in Hong Kong; and Cai has made numerous high-profile crypto investments through his personal fund.

Ethereum Set for ‘Trillion-Dollar Phase’ as Institutions Seek Quality

At the Digital Assets Summit (DAS) 2025 in London, leading industry figures, including Consensys CEO Joseph Lubin and SharpLink Co-CEO Joseph Chalom, examined Ethereum’s expanding role as a cornerstone of institutional finance.

The panel, titled “The Path to Trillions: Ethereum’s Institutional Dominance,” discussed how Ethereum’s infrastructure, staking yields, and tokenization features are positioning it at the forefront of the next wave of global financial innovation.

Speakers emphasized critical drivers for institutional adoption, such as on-chain fund issuance, interoperability, and enhanced regulatory clarity, which could solidify Ethereum’s leadership in decentralized finance (DeFi) and tokenized real-world assets.

Lubin remarked that Ethereum’s advancements in scalability and compliance are rekindling institutional trust.

Chalom, a former executive at BlackRock, commented on the recent downturn in the crypto market, describing it as “a terrible day for humans,” attributing the chaos to “insidious leverage garbage.”

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