Li Lin, the founder of cryptocurrency exchange Huobi and chairman of Avenir Capital, is spearheading a new digital asset trust aimed at accumulating $1 billion worth of Ethereum (ETH). This initiative, reported by Bloomberg, positions the trust to become one of the largest private accumulators of ETH, with significant backing from prominent Asian investors.
The trust has secured $1 billion in commitments, including $200 million from Li Lin's Avenir Capital and $500 million from institutional investors such as HongShan Capital Group. Key partners in this venture include Fenbushi Capital co-founder Shen Bo, HashKey Group CEO Xiao Feng, and Meitu founder Cai Wensheng, all of whom were early supporters of Ethereum since its 2015 launch.
Background details reveal that Avenir Group is a major holder of spot Bitcoin ETFs in Asia, and the trust plans to use a Nasdaq-listed shell company for structuring. This move aligns with broader trends of institutional adoption, as evidenced by the launch of Asia's first spot BTC and ETH ETFs in April 2024 and the SEC's approval of U.S. spot Ethereum ETFs in July 2024.
Currently, Ethereum is trading at $3,875, below its 50-day exponential moving average, indicating short-term price pressure. However, long-term prospects are bolstered by growing institutional interest, with public companies holding over $16.9 billion in ETH as treasury assets, led by BitMine with more than 3 million ETH worth over $11 billion.
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