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Blockstream to launch Bitcoin funds with multi-billion backing

Blockstream to launch Bitcoin funds with multi-billion backing

GrafaGrafa2025/03/05 09:40
By:Mahathir Bayena

Bitcoin (CRYPTO:BTC) developer Blockstream has secured a multibillion-dollar investment to introduce three new institutional funds, including two focused on Bitcoin-backed lending.

The funds are scheduled to launch on April 1, with external capital acceptance beginning on July 1, according to a March 4 post from the firm.  

These new investment products will allow institutional investors to participate in Bitcoin-backed lending, providing an opportunity to unlock liquidity without selling Bitcoin.

The offering also includes USD-collateralised borrowing and hedge fund strategies designed to provide institutional exposure to Bitcoin markets.

In January, Blockstream launched its asset management business with two new funds: the Blockstream Income Fund and the Blockstream Alpha Fund.

The Income Fund will focus on loans ranging from $100,000 to $5 million, while the Alpha Fund will target portfolio growth, particularly through exposure to infrastructure-based revenue streams, such as operations on the Lightning Network.

Blockstream, known for its Liquid Network product, a Bitcoin sidechain aimed at improving transaction speeds, also secured $210 million in financing through convertible notes in October.

The company now joins several other entities, including Grayscale, Pantera, and Galaxy Digital, offering crypto-focused investment funds.

Blockstream’s move to offer Bitcoin-backed lending products represents an expansion of its efforts to provide institutional-grade financial services.

CEO Adam Back has voiced his concerns regarding President Donald Trump's March 2 announcement of a strategic crypto reserve.

While the reserve includes Bitcoin and Ether (CRYPTO:ETH), it has faced criticism for also including cryptocurrencies like XRP (CRYPTO:XRP), Solana (CRYPTO:SOL), and Cardano (CRYPTO:ADA).

In response, Back, along with other industry figures, has questioned the inclusion of these assets.

At the time of reporting, the Bitcoin (BTC) price was $87,517.59.

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