EddieJayonCrypto
5 Mar 25
Bitcoin infrastructure provider Blockstream has announced the launch of institutional-grade Bitcoin investment funds, set to go live on April 1st. These funds will offer new Bitcoin-backed lending and investment solutions, with external capital acceptance beginning on July 1. Blockstream has secured...
Bitcoin infrastructure provider Blockstream is all set to launch institutional-grade Bitcoin investment funds on April 1st. These funds will introduce new Bitcoin-backed lending and investment solutions, with external capital acceptance beginning on July 1st. The firm has secured a multi-billion-dollar investment to support these initiatives and has expanded its presence in Asia with a new office in Tokyo.
The launch of these new investment vehicles by Blockstream comes at a time when the crypto lending industry has faced significant upheaval following the collapse of FTX. This collapse led to a series of bankruptcies among major lenders, but institutional demand for Bitcoin-native financial products continues to grow.
The new investment vehicles from Blockstream will include a Bitcoin-backed lending fund, a USD-collateralized borrowing fund, and a hedge fund strategy offering institutional exposure to Bitcoin markets. These lending funds will allow investors to access liquidity without selling their Bitcoin. Blockstream has also expanded into asset management with the introduction of two institutional investment funds – Blockstream Income Fund and Blockstream Alpha Fund.
The Income Fund offers USD-denominated yields by issuing Bitcoin-backed loans, while the Alpha Fund focuses on portfolio growth through infrastructure-based revenue streams. These initiatives mark Blockstream's expansion into asset management, providing institutional investors with new ways to engage with Bitcoin-backed financial products. Additionally, the firm has bolstered its presence in Asia with the opening of a new office in Tokyo.