Asian Investors Plan $1 Billion Ethereum Treasury
Several key crypto investors in Asia are working together to create a $1 billion Ethereum (ETH) treasury. Li Lin, founder of Huobi and chairman of Avenir Capital, is leading the effort. Other participants include Xiao Feng, CEO of HashKey Group, Shen Bo, co-founder of Fenbushi Capital, and Cai Wensheng, founder of Meitu Inc.
Investors have already pledged about $1 billion. This includes $500 million from institutional investors like HongShan Capital Group and $200 million from Avenir Capital. Bloomberg reported these details, citing sources close to the project.
The official launch of the treasury is expected in two to three weeks. However, discussions are still ongoing, and some details may change.
This move adds to the growing number of digital asset treasuries holding Ethereum. Currently, these treasuries hold 3.6 million ETH. BitMine Immersion leads with 1.7 million ETH, followed by SharpLink Gaming with over 797,000 ETH, worth about $3 billion.
Some experts warn of a bubble in Ethereum treasuries. BitMine Chairman Thomas Lee said the bubble has burst, as many treasuries now trade below their net asset value.
Ethereum Price Drops Below $3,800 Support
Ethereum’s price fell by 2% on Friday despite news of the new treasury plans. In the last 24 hours, $215.9 million in ETH futures were liquidated. Long positions accounted for $146.1 million of these liquidations.
ETH briefly dropped below the key support level at $3,815. Bulls quickly pushed the price back above this level. Still, the price faces resistance from a descending trendline above it.
If ETH fails to hold $3,800, it may fall toward the next support near $3,500.
Technical indicators show bearish momentum. The Relative Strength Index (RSI) and Moving Average Convergence Divergence (MACD) are below neutral levels, signaling selling pressure.
