(Bloomberg) -- HashKey Capital Ltd. has raised $500 million to create one of Asia’s biggest crypto investment pools, betting on a rebound in the industry still reeling from the collapse of FTX.

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The Hong Kong-based asset manager fell shy of its initial target of $600 million, reflecting growing caution about the sector after a series of confidence-shaking blowups and bankruptcies over the past year.

“Timing matters more than size,” said HashKey Chief Executive Officer Deng Chao. “We think the market is already at the bottom of a cycle, and that’s why we moved faster.”

HashKey’s latest fund will invest in blockchain infrastructure and applications that have potential for mass adoption, with money from investors including sovereign wealth funds, family offices and high-net-worth individuals, according to a company statement.

Founded in 2018, HashKey has managed over $1 billion in client assets. Its investment portfolio includes Animoca Brands Corp., Polkadot and Blockdaemon Inc. Its Shanghai parent Wanxiang Group Corp. is one of the earliest investors in the Ethereum platform.

Crypto startup funding plunged to its lowest level in almost two years during the final quarter of 2022 after the implosion of digital-asset exchange FTX. Tokens such as Bitcoin and Ether have rallied in recent days, with Bitcoin climbing above $20,000 for the first time in two months.

Read more: Early Ethereum Backer Targets Asia’s Biggest Crypto Venture Fund

--With assistance from Yoolim Lee.

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