In just four months since its official launch, Huobi Trust has achieved a remarkable milestone—surpassing $1 billion in entrusted digital asset holdings by the end of August. This rapid growth has sparked widespread speculation: could Huobi Trust emerge as Asia’s answer to Grayscale, the world’s largest crypto investment firm?
As global interest in regulated digital asset management intensifies, Hong Kong-based Huobi Technology is strategically positioning itself at the forefront of institutional-grade crypto custody and fund services. With key regulatory approvals in both Hong Kong and the U.S., and a growing suite of investment products tailored for professional investors, Huobi Trust is building the infrastructure necessary to bridge traditional finance with the emerging digital economy.
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From Exchange Giant to Institutional Custodian
Huobi Trust, a subsidiary of Huobi Technology (a publicly traded company on the Hong Kong stock exchange), marks a pivotal evolution from its origins as a cryptocurrency exchange. The shift reflects a broader industry trend—moving from speculative trading platforms toward regulated financial services that cater to institutional clients.
In April 2025, Huobi Trust received official registration in Hong Kong as a licensed trust company. This allows it to offer compliant digital asset custody solutions for clients seeking secure storage and risk isolation. Around the same time, its U.S. arm—Huobi Trust US—secured a trust charter from the Nevada Department of Business and Industry Financial Institutions Division.
This dual-jurisdiction licensing strengthens Huobi’s credibility and expands its reach across major financial markets. It also aligns with increasing demand for auditable, transparent, and legally sound asset protection mechanisms—an essential prerequisite for institutional adoption.
Launching Asia’s First Listed Crypto Funds
One of Huobi Technology’s most significant achievements came in May 2025, when it released its mid-year financial report revealing HK$900,000 in revenue generated from custody and compliance services. More importantly, this report confirmed that Huobi Asset Management (Hong Kong) Limited had obtained licenses under Categories 4 (advising on securities) and 9 (asset management) from the Securities and Futures Commission (SFC) of Hong Kong.
These licenses paved the way for Huobi to become the first listed company in Hong Kong approved to launch cryptocurrency funds.
On April 22, 2025, Huobi Asset Management officially launched four funds targeted exclusively at professional investors:
- Bitcoin Tracking Fund
- Ethereum Tracking Fund
- Actively Managed Multi-Strategy Virtual Asset Fund
- Private Equity Fund Focused on Blockchain Mining Infrastructure
Shortly after, a fifth fund was introduced—a diversified portfolio allocating 10% to digital assets and 90% to traditional investments such as equities and fixed-income instruments.
This product lineup demonstrates a balanced approach: offering pure-play exposure to major cryptocurrencies while also providing hybrid options that ease institutional clients into the space with reduced volatility.
Building Toward an Asian Grayscale
Grayscale, founded in 2013 under Digital Currency Group (DCG), manages over $37 billion in crypto assets through regulated trust structures. Its flagship products—Grayscale Bitcoin Trust (GBTC) and Grayscale Ethereum Trust (ETHE)—are widely held by hedge funds, family offices, and pension funds.
While no Asian equivalent has yet reached that scale, Huobi Trust is showing early signs of filling the void. With over $1 billion in assets under custody within four months, it has demonstrated strong market traction.
The analogy to Grayscale isn’t unfounded. Both entities focus on institutional clients, emphasize regulatory compliance, and provide trusted access to volatile digital assets through structured financial products.
However, there are critical differences. Unlike Grayscale, whose shares trade over-the-counter and offer secondary market liquidity, Huobi Trust products are currently not listed on any public exchange. This raises concerns about exit mechanisms and long-term investor confidence.
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Strategic Advantages and Market Challenges
Huobi Trust benefits from one unique advantage: its close relationship with a major exchange ecosystem. While many standalone custodians lack direct liquidity channels, Huobi can leverage its parent company’s trading infrastructure to enhance operational efficiency and attract yield-generating strategies.
Moreover, in June 2025, Huobi Global announced it would migrate collateral assets backing its H-series tokens—BTC, LTC, BCH, BSV, XTZ, DOT, and FIL—to Huobi Trust for secure custody. This not only boosts the trust’s asset base but also reinforces transparency through periodic proof-of-reserves reporting.
Yet challenges remain. In late September 2024, Chinese regulators—including the central bank and Supreme People’s Court—issued a sweeping directive restricting cryptocurrency activities within mainland China. In response, Huobi Global announced it would fully withdraw from the Chinese market by year-end.
While Huobi Trust operates out of Hong Kong and complies with local regulations, the exit from mainland China limits access to one of Asia’s largest investor pools. Additionally, capital controls and foreign investment quotas make it difficult for mainland investors to participate directly.
As Liu Kai, partner at Hangzhou Dongyuan Equity Investment, noted: “Hong Kong-based institutional capital can engage with these products, but mainland participation remains constrained. Liquidity will depend heavily on whether these funds gain approval for listing on the Hong Kong Stock Exchange.”
Core Keywords Driving Growth
The rise of Huobi Trust reflects broader trends shaping the future of digital finance. Key keywords defining this transformation include:
- Digital asset custody
- Crypto investment funds
- Regulated virtual assets
- Institutional crypto adoption
- Hong Kong SFC licensing
- Bitcoin and Ethereum trusts
- Asset-backed tokens
- Compliant blockchain finance
These terms represent not just search trends but actual shifts in how financial institutions view and integrate blockchain-based assets.
Frequently Asked Questions (FAQ)
Q: What is Huobi Trust?
A: Huobi Trust is a licensed digital asset custody and trust services provider based in Hong Kong, offering secure storage and fund management solutions for institutional and professional investors.
Q: How does Huobi Trust compare to Grayscale?
A: Both focus on regulated crypto investment vehicles for institutions. However, Grayscale has greater scale and publicly tradable shares. Huobi Trust is newer but benefits from exchange integration and dual jurisdictional licensing.
Q: Are Huobi Trust funds available to retail investors?
A: No. All current funds are offered exclusively to professional investors as defined under Hong Kong SFC rules.
Q: Is Huobi Trust affected by China’s crypto ban?
A: While Huobi Global exited mainland operations due to regulatory pressure, Huobi Trust operates independently under Hong Kong law and continues serving international clients.
Q: Can I trade shares of Huobi Trust funds on an exchange?
A: Not currently. The funds are private placements without secondary market listings. Future liquidity depends on potential approval from the Hong Kong Stock Exchange.
Q: What cryptocurrencies does Huobi Trust support?
A: The trust currently supports major assets including Bitcoin (BTC), Ethereum (ETH), Litecoin (LTC), Bitcoin Cash (BCH), Polkadot (DOT), Filecoin (FIL), and Tezos (XTZ).
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Final Outlook: A Rising Force in Digital Finance
Despite regulatory headwinds in mainland China, Huobi Trust’s rapid ascent underscores growing demand for trustworthy, regulated crypto financial services in Asia. By combining robust compliance frameworks with innovative product design and strategic asset partnerships, it has laid a foundation capable of supporting long-term institutional engagement.
Whether it will fully evolve into an “Asian Grayscale” depends on several factors: regulatory evolution in Hong Kong, cross-border capital accessibility, and ultimately—liquidity through public listing.
For now, Huobi Trust stands as a pioneering model of how legacy crypto businesses can transform into legitimate financial intermediaries in the era of digital assets.