CryptoNews

Key takeaways

• In 2025, oil-linked capital from the Gulf, including sovereign wealth funds, family offices and private banking networks, has emerged as a significant influence on Bitcoin’s liquidity dynamics.

• These investors are entering Bitcoin primarily through regulated channels, including spot ETFs.

• Abu Dhabi has become a focal point for this shift, supported by large pools of sovereign-linked capital and the Abu Dhabi Global Market, which serves as a regulated hub for global asset managers and crypto market intermediaries.

• Oil-rich investors cite diversification, long-term portfolio construction, generational demand within private wealth and opportunities to build supporting financial infrastructure as key drivers of this interest.

Since Bitcoin (BTC) began its first sustained boom in 2013, many of its major surges have been driven by highly leveraged retail activity and trading on less-regulated platforms. After the first US Bitcoin exchange-traded fund (ETF), ProShares Bitcoin Strategy ETF (BITO), began trading on Oct. 19, 2021, Bitcoin attracted greater attention from institutional investors.

In 2025, a new source of capital began to play a larger role in shaping Bitcoin’s market structure: oil-linked funds from the Gulf region. This capital includes sovereign wealth funds, state-affiliated investment firms, family offices and the private banking networks that serve them.

These capital pools are entering the market through regulated channels, particularly spot Bitcoin exchange-traded funds (ETFs). These inflows could drive the next wave of liquidity. Rather than simply causing temporary price increases, they may support narrower bid-ask spreads, greater market depth and the ability to execute larger trades with less price impact.

This article examines how investors tied to the oil economy may influence crypto market liquidity, outlines what the next liquidity wave could look like and explains why these funds are interested in Bitcoin. It also highlights Abu Dhabi’s role as a regulated hub and the practical limits of liquidity.

Who these oil-linked investors are and why they matter for market liquidity

The term “oil-rich investors” refers to a network of capital managers whose resources are tied, directly or indirectly, to hydrocarbon revenues:

• Sovereign wealth funds and government-related entities in the Gulf, which oversee large asset bases and often shape regional investment trends

• Ultra-high-net-worth individuals and family offices, which can move more quickly than sovereign funds and typically channel demand through private banks and wealth advisers

• International hedge funds and asset managers establishing operations in Abu Dhabi and Dubai, drawn in part by proximity to regional capital.

For liquidity, the key factor is not only the size of these allocations but also how they are deployed. Many of these positions are routed through vehicles and platforms designed for institutional participation, which can support a more robust market structure.

Did you know? Spot Bitcoin ETFs do not hold futures contracts. Instead, they hold Bitcoin in custody. This means net inflows generally require purchases of BTC in the spot market, linking investor demand more directly to spot liquidity than to derivatives-based exposure.

What the next liquidity wave actually means

From a market-structure perspective, a liquidity wave is typically characterized by:

• Larger, more consistent daily flows into regulated products rather than short-lived spikes

• Deeper order books and narrower spreads in spot markets

• Increased primary-market ETF activity, including share creations and redemptions, which typically involves professional hedging

• Stronger, more resilient derivatives markets, including futures and options, supported by regulated venues and clearing services.

A key difference from earlier cycles is the maturation of market infrastructure. Spot Bitcoin ETFs provide a familiar, regulated vehicle for traditional investors. Meanwhile, prime brokerage services, institutional custody and regulated trading hubs have reduced operational friction for large-scale allocations.

Did you know? Authorized participants, not ETF issuers, typically handle Bitcoin buying and selling tied to ETF flows. These large financial firms create and redeem ETF shares and may hedge across spot and derivatives markets, influencing day-to-day liquidity behind the scenes.

Abu Dhabi-linked conservative capital flows

Spot Bitcoin ETFs have become a straightforward route for this type of capital. The structure and risk profile of crypto ETFs, such as BlackRock’s iShares Bitcoin Trust (IBIT), differ from traditionally registered funds. For investors focused on governance and compliance, these distinctions can matter.

During the third quarter of 2025, the Abu Dhabi Investment Council increased its exposure to Bitcoin by expanding its position in IBIT. A regulatory filing shows the fund had raised its stake from about 2.4 million shares to nearly 8 million by Sept. 30, with the position worth roughly $518 million at quarter-end based on the closing price.

These figures suggest that Gulf-based capital is gaining Bitcoin exposure through US-regulated listings. Even when implemented through a straightforward ETF purchase, such inflows can support liquidity because market makers and authorized participants may hedge exposure across spot and derivatives markets as flows change.

Why Abu Dhabi’s oil-linked capital is interested in Bitcoin

There are several overlapping reasons oil-rich investors are interested in Bitcoin:

• Diversification and long-term portfolio strategy: Gulf investors, particularly those linked to sovereign entities, often look for long-duration themes, diversification and global opportunities. Some institutions frame Bitcoin as a potential long-term store of value, in a similar way to how gold is used in multiasset portfolios, although Bitcoin’s risk profile and volatility are materially different.

• Generational shifts in private wealth: Some wealth managers in the UAE report rising client interest in regulated digital asset exposure, especially among younger high-net-worth investors. This has pushed traditional platforms to broaden access through regulated products and venues.

• Building the supporting infrastructure: Beyond direct allocations, parts of the region are investing in crypto market infrastructure, including regulated exchanges, custody solutions and derivatives platforms. These systems can reduce operational friction for institutional participation and may support more durable liquidity over time.

Did you know? Many spot Bitcoin ETFs use multiple custodians and insurance layers. This setup reflects institutional risk management standards and reassures conservative investors who would never self-custody private keys.

Geography matters: The UAE’s role as a regulated hub

Liquidity tends to concentrate when regulation, licensing and institutional counterparties are reliable. The UAE has built a multi-layered framework that combines federal oversight with specialized financial free zones, such as the Abu Dhabi Global Market (ADGM).

Several developments have supported ADGM’s positioning as an institutional base. For example, Binance obtained regulatory authorization under the ADGM framework.

According to a Reuters report, ADGM has seen rapid growth in assets under management, which the report linked to its proximity to Abu Dhabi’s sovereign capital pools. When market makers, prime brokers, hedge funds and wealth platforms cluster in one jurisdiction, it can support more continuous two-way flow, stronger hedging activity and tighter pricing.

How oil-linked capital can strengthen Bitcoin liquidity

Inflows from sovereign wealth funds tied to the oil economy can introduce an additional layer of institutional demand in the Bitcoin market, which may support liquidity and market depth.

• The ETF flywheel: Institutional purchases through spot ETFs can trigger share creations, hedging activity and related trading by professional intermediaries. This can increase turnover and tighten spreads, especially when inflows are steady.

• Large over-the-counter trades and prime brokerage: Major investors often prefer block trades and financing facilities to reduce market impact. This can encourage intermediaries to commit capital and improve execution services.

• Regulated derivatives and clearing: A more developed, regulated derivatives ecosystem can improve price discovery and risk transfer. It can also help market makers manage risk more efficiently, which may support tighter quotes in the spot market.

Did you know? Spot Bitcoin ETFs trade during stock market hours, while Bitcoin trades 24/7. This mismatch can contribute to price gaps at the stock market open, especially after major overnight moves or weekend volatility in crypto markets.

Institutional exits and the limits of liquidity

Institutional participation does not eliminate downside risk. Bitcoin remains volatile, and even widely used products can see sharp outflows.

For example, Reuters reported that BlackRock’s iShares Bitcoin Trust (IBIT) saw a record single-day net outflow of about $523 million on Nov. 18, 2025, during a broader crypto market pullback. The report cited factors such as profit-taking, fading momentum and a shift in preference toward gold.

Availability of access does not guarantee continued allocation. Liquidity flows in both directions, so the same infrastructure that supports large inflows can also enable rapid exits.

Governments also shape the regulatory environment. Policy and supervisory changes can expand or restrict how funds access Bitcoin-linked products and, in some cases, Bitcoin itself.

Key takeaways

• HashKey is aiming to become Hong Kong’s first fully crypto-native IPO by listing 240.57 million shares under the city’s virtual asset regulatory regime.

• The business extends beyond a spot exchange by combining trading, custody, institutional staking, asset management and tokenization into a single regulated platform.

• Revenue is growing, but the company is still incurring losses as it invests heavily in technology, compliance and market expansion.

• Most IPO proceeds are expected to fund infrastructure and international growth, positioning the listing as a long-term bet on regulated digital asset markets.

HashKey wants to become the first crypto exchange that Hong Kong investors can buy on their local stock market. The company has filed for an initial public offering (IPO) that could make it the city’s first publicly listed, fully crypto-native venue under the new virtual asset regime. It is offering 240.57 million shares, with a portion reserved for local retail investors.

Shares are being marketed in a range of 5.95-6.95 Hong Kong dollars, which could rise to 1.67 billion HKD, about $215 million, and imply a multibillion-dollar valuation if the offering is fully subscribed.

Trading is expected to begin on Dec. 17 on the Hong Kong Stock Exchange.

HashKey already operates what it describes as Hong Kong’s “largest licensed platform,” a broader stack that includes custody, institutional staking and tokenization. In its latest filing, the group reported tens of billions of Hong Kong dollars in staking assets and platform assets under management.

In the sections that follow, we will look at what the business does, how its financials compare, how it plans to use the IPO proceeds and why the outcome of this listing matters for understanding Hong Kong’s broader virtual asset ambitions.

Did you know? Some analysts view HashKey’s IPO as a real-time test of whether public markets are willing to back heavily regulated crypto infrastructure.

Why HashKey’s IPO could be a key step for Hong Kong

HashKey is among the first major attempts to put Hong Kong’s new virtual asset rulebook in front of public equity investors. The exchange plans to offer 240.57 million shares in total, with 24.06 million allocated to local investors and the remainder to international buyers, at a maximum offer price of 6.95 HKD per share.

Final pricing is due on Dec. 16, 2025, with trading scheduled to begin the next day under the proposed stock code 3887. If the offering is fully subscribed at the top of the range, it could rise to 1.67 billion HKD, about $215 million, potentially making HashKey one of the more prominent listed crypto-focused companies in Asia.

The listing is also a milestone in Hong Kong’s effort to rebuild its status as a digital asset hub after years of regulatory uncertainty. Over the past two years, the city has introduced a dedicated licensing regime for retail and institutional crypto platforms, allowed tightly controlled staking services and strengthened custody requirements and stablecoin oversight.

HashKey offers an early, detailed look at what a fully regulated, multi-line crypto business can look like under that framework.

The IPO could serve as a real-time test of investor appetite for compliance-first crypto infrastructure, especially as mainland China maintains strict limits on many digital asset activities. Beijing has already moved to halt some large tech-backed stablecoin projects in the city: Hong Kong’s experiment does have political limits.

How HashKey trades after its debut may be seen as an early indication of whether those constraints still leave enough room for a profitable, listed crypto exchange to succeed.

Did you know? HashKey Group has backing from established institutional investors, including entities linked to Wanxiang, which gives it a more traditional finance profile than many offshore exchanges.

What business is actually going public?

On paper, HashKey Holdings is an exchange IPO. In practice, investors are being offered a broader crypto infrastructure stack that has already been reviewed and licensed under Hong Kong’s regulatory framework.

At the core is HashKey Exchange, a Hong Kong-based trading venue licensed by the Securities and Futures Commission (SFC) under Type 1 and Type 7 licenses for dealing in and operating a virtual asset trading platform. It supports spot trading, over-the-counter services and fiat on- and off-ramps in HKD and USD. The company describes itself as Hong Kong’s largest licensed venue serving both retail and professional clients.

Around that sits a broader ecosystem. HashKey Cloud provides institutional staking and node services, and the company says it has received approval to support staking for Hong Kong’s spot Ether exchange-traded funds (ETFs). In its filings, HashKey reported managing about 29 billion HKD in staked assets as of the end of the third quarter of 2025, positioning it as one of Asia’s largest staking providers and among the larger players globally.

The group also operates an asset management arm offering crypto funds and venture strategies. According to its filings, it had about 7.8 billion HKD in assets under management as of Sept. 30, 2025. It has also moved into tokenization through HashKey Chain, a network focused on real-world assets (RWAs), stablecoins and institutional use cases. The company reported roughly 1.7 billion HKD in onchain RWAs on the network.

Finally, HashKey has been building out crypto-as-a-service tools and pursuing licenses across markets, including Singapore, Dubai, Japan, Bermuda and parts of Europe. This suggests the IPO is intended to support international expansion and a white-label infrastructure model, not just a single market Hong Kong exchange.

Did you know? According to HashKey’s disclosures, its RWA network has already tokenized more than 1 billion HKD worth of real-world assets onchain, including products such as structured notes and private credit.

Revenue, losses and the “compliance-first” bet

HashKey reflects a typical growth-stage pattern: Revenue has risen quickly, but the business remains cash-consuming as it invests in expansion, licensing and compliance. Total revenue increased from about 129 million HKD in 2022 to 721 million HKD in 2024, more than a 4.5x rise in two years, as its Hong Kong and Bermuda exchanges launched and trading activity grew.

That growth has not yet translated into profits. A review of the filing indicates net losses nearly doubled over the same period, from 585.2 million HKD in 2022 to 1.19 billion HKD in 2024, driven by higher spending on technology, headcount, compliance and marketing.

Trading volumes rose from 4.2 billion HKD in 2022 to 638.4 billion HKD in 2024, but a low-fee strategy and the costs of operating licensed venues across multiple jurisdictions kept the bottom line deeply negative.

More recent numbers suggest the trajectory may be improving. In the first six months of 2025, HashKey reported a net loss of 506.7 million HKD, narrower than the 772.6 million HKD loss in the same period a year earlier.

The company frames these losses as the cost of building a licensed, compliant and scalable digital asset platform ahead of the market cycle. It argues that the long, expensive build-out mirrors how earlier exchange leaders looked before they became profitable.

How HashKey plans to use the IPO proceeds

HashKey is explicit about how it plans to use the new capital.

• Roughly 40% of the net proceeds are earmarked for technology and infrastructure upgrades over the next three to five years. This includes scaling HashKey Chain and the exchange’s matching engine, as well as strengthening custody, security and back office systems. Company summaries also point to derivatives, yield products and improved institutional tools as specific build-out areas, which would move HashKey closer to the full suite product set offered by larger international venues.

• Another 40% is allocated to market expansion and ecosystem partnerships. In practice, this means pushing more aggressively into new jurisdictions and scaling crypto as a service arrangements where banks, brokers and fintechs connect to HashKey’s custody and trading stack via APIs rather than building the full infrastructure in-house. The company’s discussion of overseas licensing and institutional relationships suggests it aims to differentiate itself from exchanges that rely primarily on retail activity.

• The remaining 20% is split between operations and risk management (10%) and working capital and general corporate purposes (10%). This includes hiring, strengthening compliance and internal controls and maintaining balance sheet flexibility to navigate market cycles.

What’s next?

There are three things to watch as December unfolds:

• How the deal is priced and how the shares trade after listing

• Whether HashKey can turn its full stack, including exchange, custody, staking and tokenization, into steady, diversified revenue

• How firmly Hong Kong maintains its licensed but open approach to digital assets.

If HashKey executes well, it could give other exchanges, banks and tokenization projects a clearer pathway to go public in the city. If it struggles, the outcome may highlight where the practical limits of Hong Kong’s virtual asset experiment lie.