HashKey Holdings’ shares fell about 5% in their Hong Kong trading debut, a muted reception that underscores investor caution toward the exchange’s business model despite its dominant position in the city’s regulated crypto market.

The stock opened below its IPO price and slid to around HK$6.34 by mid-morning. The decline followed the release of prospectus disclosures earlier in December, showing heavy losses but rapid growth in users and activity.

The IPO comes at a time when bitcoin has pulled back from its all-time high earlier this year, to trade around $87,000, taking down the valuation of most crypto-linked stocks globally.

HashKey controls roughly three-quarters of Hong Kong’s licensed crypto trading market and processed more than $81.8 billion (HK$638 billion) in volume in 2024, according to the prospectus.

But its ultra-low fee strategy, with charges largely below 0.1%, has kept revenue growth far behind operating costs tied to licensing, custody, compliance, and infrastructure. The exchange reported cumulative net losses of about $385 million (HK$3.0 billion) between 2022 and mid-2025, with a monthly cash burn that remains elevated.

Investors appear to be weighing whether scale alone can fix that imbalance. Early trading suggests the market is reserving judgment, waiting for clearer evidence that fees can rise or that higher margin services can make a meaningful contribution.

The weak debut could also reflect a narrower growth narrative. HashKey has withdrawn from offshore retail markets, closing its Bermuda-registered entity, and is increasingly tied to Hong Kong’s regulatory framework, making its outlook more dependent on local policy, institutional participation, and capital market activity than broader crypto cycles.

HashKey is a competitor to CoinDesk's parent company, Bullish.

(UPDATE, Dec. 15, 2:52 UTC): Adds additional broader market context.