- Li Lin is leading a one billion dollar Ether trust backed by top early Ethereum investors.
- The trust may buy a Nasdaq company to meet rules and attract large investors.
- Institutions are increasing their Ether holdings through new and safer investment options.
Li Lin, the founder of Huobi and chairman of Avenir Capital, is chairing a new $1 billion Ether (ETH) trust. The trust will be focused on amassing Ether and targeting institutional investors interested in exposure to digital assets. It has secured strong financial commitments and includes support from notable early Ethereum investors.
Lin is working with Shen Bo of Fenbushi Capital, Xiao Feng of HashKey Group, and Cai Wensheng of Meitu. These investors are renowned for being among the early adopters of Ethereum and have strong ties within the crypto sector. The overall experience of the two gives validity to the strategic direction of the trust.
Structural Plans Underway
The group is exploring structural options for the trust. Discussions include the acquisition of a Nasdaq-listed company to support the trust’s framework. This would help the trust meet regulatory standards and improve its institutional appeal.
By acquiring a public company, the team seeks to provide a clear legal structure. This is to enhance investor confidence. Negotiations are still going on regarding the final arrangement, and it will likely be launched in the following weeks.
The program already has an estimated amount of $1 billion in funding. Avenir Capital has committed $200 million, while HongShan Capital Group has pledged $500 million. Other institutional sources support the remaining amount.
Rising Institutional Demand for Ether
Institutional interest in Ether is increasing, especially after the success of Bitcoin ETFs. Ether is now seen as a key asset in the broader digital economy. Managers are responding by creating new investment vehicles focused on Ethereum.
According to the CoinGecko data, there are 14 publicly traded companies with more than 4.4 million ETH. These assets are worth approximately $16.9 billion. Tom Lee’s BitMine leads with more than $11 billion in ETH. This trend highlights growing institutional confidence in Ethereum’s long-term role.
Key Figures and Market Position
Li Lin’s experience in the crypto market strengthens the trust’s potential. After founding Huobi in 2013, he sold it in 2021 following China’s crypto ban. It then rebranded to HTX. He currently leads Avenir Capital, one of Asia’s top digital asset firms.
Avenir already manages over $1 billion in Bitcoin ETFs. Its focus on Ether signals a broader shift among managers diversifying beyond Bitcoin. Lin’s new trust is positioned to capture early institutional demand for Ether.
The trust’s structure, combined with strong investor backing, may set a new standard for Ether-focused funds. As interest grows, more firms may follow similar strategies to enter Ethereum’s investment space.
