Key Highlights:
- The $1B Ethereum Digit Asset Treasury (DAT) plan, led by prominent Asian crypto industry leaders has been shelved.
- The project raised $200 million in funds which have now been returned back to the investors.
- The plan has been shelved mainly due to the October market crash.
A plan to build a $1 billion Ethereum Digital Asset Trasury (DAT), led by Asia’s well-known crypto industry leaders, has now been put on hold as reported by Wu Blockchain. The main aim of the whole initiative was to acquire a large amount of ETH position through a Nasdaq shell company structure that was being backed by various Asian institutions. The project also managed to raise $200 million, which have now been returned back to the investors.
Exclusive: The US$1 billion Ethereum DAT proposed by leading Asian crypto investors has been shelved, and the committed capital has been returned. Multiple authoritative sources confirmed the development to WuBlockchain. https://t.co/SwJ4dfWrcS pic.twitter.com/qszUTBbW3N
— Wu Blockchain (@WuBlockchain) November 19, 2025
Overview of the Shelved $1 Billion Ethereum DAT Plan
The Ethereum DAT project was one of a major effort by early and influential Ethereum backers from Asia aiming to build a large-scale digital asset treasury firm. The team included Huobi founder Li Lin, Fenbushi Capital founder Shen Bo, Hashkey Group CEO Xiao Feng and Meitu founder Cai Wensheng, all of them are well-known for their deep engagement in the crypto ecosystem.
The original plan was to acquire a Nasdaq-listed shell company so that it can facilitate regulated institutional exposure to ETH, with an initial fundraise involving about $200 million from Avenir Capital and approximately $500 million from other Asian financial institutions.
The strategy is similar to that of MicroStrategy, where public listings are leveraged to purchase crypto assets. However, despite the ambition and strong backing, the recent volatility has affected this plan and regulatory scrutiny on Nasdaq listing requirements further added complexity to the initiative’s execution.
The October Crash and its Market Impact
According to Wu Blockchain, one of the major reasons for this shelving seems to be the crypto crash that occurred during mid-October. This incident saw a sudden and massive liquidation in the cryptocurrency future market, with more than $19 billion in contracts liquidated within a single day, the largest in crypto history. This downturn was actually triggered because of geopolitical tensions due to the announcements of a 100% tariff on Chinese imports by the U.S. government. This situation initiated panic selling.
The initiative — first reported by Bloomberg in October — was led by the founders of Huobi, HashKey, and Fenbushi Capital, among the largest crypto whales in Asia. Sources said the plan was halted mainly due to the market downturn following the sharp October 11 sell-off.
— Wu Blockchain (@WuBlockchain) November 19, 2025
Bitcoin dropped approximately $15,000 at one point during the crash and the altcoins plummeted by 50%. Some of the small-cap tokens collapsed to near-zero values. However, the liquidity disappeared quickly, made worse by too much leverage in the market and weak points in how crypto trades are cleared. This highlighted serious risks in the system, revealed how over-leveraged the market had become, and caused a big drop in investor confidence.
Stock prices for numerous digital asset treasury (DAT) companies also suffered severe declines, affected the market cap and shook the financial stability of entities planning or operating with crypto reserves. Many of the Ethereum Treasury (DAT) companies now have their mNAV below 1, for example, BitMine’s mNAV stands at 0.86 and SharpLink’s mNAV stands at 0.85.
The crash was caused by several problems that were happening at the same time, there was geopolitical tension, there was too much leveraged on the market, collateral issues and weak clearing on the systems on exchanges.
News about new trade increased fear of a global slowdown, and caused investors to get away from risky assets. As the derivative market was heavily leveraged, many of the positions were forced closed and this made the prices fall even faster.
Outlook and Next Steps
As of now, the main aim of the people who were leading the project is to put investors first and give them their money back. The project is being paused as of now. There is a possibility of the initiative being restarted if the market recovers soon and there is stability in the market. The restart will also depend on whether the rules and processes around Nasdaq listing and digital-asset treasury companies become easier to work with.
Also Read: Singapore Exchange (SGX) To Launch BTC and ETH Perpetual Futures on Nov 24
