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0 CommentsBitcoin developer Blockstream has secured a multibillion-dollar investment to launch three new institutional funds, including two that will enable lending Bitcoin.
“Blockstream’s institutional-grade Bitcoin investment solutions will go live on April 1, with external capital acceptance opening on July 1,” the firm stated on X on March 4, confirming an earlier Bloomberg report.
It added that the investment products will offer Bitcoin-backed lending and secure institutional financing with Bitcoin collateral, USD-collateralized borrowing enabling investors to unlock liquidity without selling Bitcoin, and hedge fund strategies offering institutional-grade exposure to Bitcoin markets.
Blockstream debuted its new asset management business in January, unveiling the Blockstream Income Fund and the Blockstream Alpha Fund.
The Income Fund is focused on loans between $100,000 and $5 million, while the Alpha Fund focuses on portfolio growth, providing investors with exposure to “infrastructure-based revenue streams like Lightning Network node operations.”
Blockstream, which offers products such as the Liquid Network — a Bitcoin sidechain launched in 2018 to provide faster transactions — secured $210 million in financing through convertible notes in October.
Blockstream joins companies like Grayscale, Pantera, Galaxy Digital, and Crypto.com in offering crypto-focused investment funds with various levels of exposure to the industry.
Blockstream CEO and Bitcoin pioneer Adam Back was among many industry leaders who derided President Donald Trump’s plans for a strategic crypto reserve because it would include cryptocurrencies besides Bitcoin.
Donald Trump announced the strategic crypto reserve on March 2, stating that it would include Bitcoin and Ether.
However, he sparked a wave of criticism for including XRP, Solana and Cardano in the reserve.
