Hong Kong Targets 10,000 BTC in New Institutional Push

A Hong Kong-listed company is aiming to attract more than 10,000 Bitcoin, worth approximately $760 million, into a new regulated asset management strategy. The move, backed by HTX founder Li Lin, is a significant part of Hong Kong's effort to establish itself as a primary crypto hub for Asian capital, creating a regional alternative to US-based Bitcoin ETFs.

"We aim to attract more than 10,000 BTC from investors," Livio Weng, CEO of the Hong Kong-listed Bitfire Group, said regarding the firm's new "Alpha $BTC" strategy. The plan involves Li Lin's family office, Avenir Group, which has become one of Asia's largest holders of US Bitcoin ETFs with a $908 million position in BlackRock's IBIT, moving a trading system and investment team into Bitfire.

The strategy is expected to use derivatives tied to Bitcoin or BlackRock’s IBIT, providing a locally regulated "wrapper" for an asset that trades globally. This structure is designed to appeal to family offices, listed companies, and fund managers in Asia who require local custody, audited statements, and regulatory oversight within their own time zone and legal framework, rather than relying on US market infrastructure.

This initiative highlights a growing competition for jurisdiction over institutional Bitcoin access. While US spot ETFs have dominated regulated inflows, Hong Kong is building a parallel system. The city has licensed virtual asset trading platforms, launched its own spot crypto ETFs in 2024, and established a licensing framework for stablecoin issuers, all aimed at converting crypto from an offshore activity into a locally regulated capital market.

The 'Barbell' of Institutional Capital

Bitfire's push aligns with a broader divergence in institutional crypto strategy observed in the first quarter of 2026. During a period where Bitcoin's price corrected over 25 percent, market data showed a "barbell structure" of capital flows. On one side, long-term holders like corporate treasuries and sovereign wealth funds used the dip to increase their positions. On the other, some hedge funds and miners became net sellers.

For example, Strategy continued its aggressive accumulation by adding over $10 billion in Bitcoin, while Abu Dhabi's sovereign wealth fund Mubadala increased its holdings in BlackRock's IBIT by 46 percent. In contrast, hedge funds like Brevan Howard reportedly slashed their IBIT holdings by 85 percent. Bitfire's 10,000 BTC target firmly places it in the camp of "patient capital" that is building long-term, regulated exposure.

A Regional Answer to Wall Street

The core of Hong Kong's strategy is to provide a comprehensive, local ecosystem for digital assets. By licensing exchanges, asset managers, and stablecoin issuers, the city is creating the financial infrastructure necessary to attract and retain regional capital that might otherwise flow to the US. For an investor in Asia, a Hong Kong-regulated vehicle means dealing with local lawyers, banks, and regulators under a familiar legal system.

This localization of access is becoming a key theme in Bitcoin's maturation. The asset itself is global and borderless, but large-scale investment requires structures with clear legal and regulatory boundaries. The US captured the first major wave with its spot ETFs. Hong Kong's ambition, underscored by the scale of the Alpha $BTC plan, is to capture the next wave by building a competitive, regulated capital pool in Asia. The success of this strategy could lead to price discovery becoming less centered on US market hours over time.

This article is for informational purposes only and does not constitute investment advice.