Canadian company Blockstream, co-founded by prominent Bitcoin developer Adam Back, has secured billions of dollars to launch three new investment funds focused on crypto lending and hedge fund strategies.
The Three New Bitcoin Funds
Blockstream is launching three separate investment funds for institutional investors and high-net-worth individuals. The first fund is the Bitcoin-Backed Lending Fund, which underwrites loans backed by Bitcoin collateral, offering liquidity without requiring sales of holdings. The second fund is the Crypto Borrowing Fund, allowing institutions to borrow using U.S. dollars as collateral. The third fund is the Hedge Fund Strategy Fund, deploying hedge fund investment strategies in Bitcoin markets. These funds will launch in April, with additional external capital acceptance starting in July.
Reviving Institutional Crypto Lending
Following the collapse of FTX in 2022, the crypto lending sector took a significant hit. However, Blockstream's new investment initiative suggests a renewed investor appetite for Bitcoin-backed loans. According to Bloomberg, the new investment in Blockstream reflects renewed confidence in the long-term viability of Bitcoin-based financial services.
Blockstream’s Expansion into Asia
Blockstream is expanding its operations into Asia by opening an office in Tokyo and collaborating with leading local companies like Diamond Hands and Fulgur Ventures. This expansion will help Blockstream promote Bitcoin-based financial solutions in Asian markets.
With the secured investment, Blockstream is taking its offerings to the next level, providing institutional solutions in the crypto sector and solidifying its position as a major player in the market.
