Bitcoin infrastructure firm Blockstream has secured multibillion-dollar investments to launch three new investment funds focusing on crypto lending and hedge fund strategies.
The Three New Blockstream Funds
Blockstream’s latest venture includes three distinct funds, each targeting institutional investors and high-net-worth individuals.
- Bitcoin-Backed Lending Fund underwrites loans backed by BTC, offering liquidity without requiring investors to sell their assets. - Crypto Borrowing Fund allows institutions to borrow using USD as collateral, maintaining exposure to crypto assets. - Hedge Fund Strategy Fund deploys hedge fund strategies in Bitcoin markets, targeting high-yield opportunities.
These funds are set to launch in April, with additional external capital acceptance starting in July.
Reviving Institutional Crypto Lending
Crypto lending has faced challenges since the FTX collapse, which exposed risky lending practices and left many institutional lenders bankrupt. However, Blockstream's new initiative suggests a returning investor appetite for Bitcoin-backed loans.
The company hinted at its lending ambitions in January. With billions now secured, it aims to restore trust in crypto lending through strong risk management and institutional-grade financial products.
Blockstream's Expansion into Asia
Alongside its new investment funds, Blockstream is expanding its operations into Asia, signaling its ambition to grow beyond North America.
- The company opened an office in Tokyo to bring Bitcoin-backed financial solutions to Japan and the broader Asian market. - It partnered with Diamond Hands, a leading Bitcoin strategic consultancy in Japan. - Blockstream is also collaborating with Fulgur Ventures to promote Bitcoin Layer 2 solutions and self-custody platforms.
As part of its investment strategy, Blockstream introduced Blockstream Asset Management to oversee its new funds.
Blockstream continues to shake up crypto finance with new funds and its expansion into Asia, targeting institutional investors and rebuilding trust in crypto lending.
