Blockstream, a Bitcoin development company, has secured a multi-billion dollar investment to introduce three institutional funds, two of which are Bitcoin-backed lending funds. They will be available from April 1 and external capital will open on July 1.
According to the company, the investment products will allow Bitcoin holders to get liquidity without selling their assets. One fund will be Bitcoin-backed lending, one will be USD-collateralized borrowing so institutional investors can use their Bitcoin and the third will be a hedge fund to give broader market exposure.
Blockstream has been expanding its financial services. In January they launched their asset management division and introduced the Blockstream Income Fund and the Blockstream Alpha Fund. The Income Fund is structured Bitcoin-backed loans from $100,000 to $5 million and the Alpha Fund is revenue streams like Lightning Network node operations.
As Bitcoin adoption grows and demand for crypto financial products increases, institutions want more structured ways to use digital assets. Blockstream’s new initiative will create a more transparent and robust lending products for institutional investors.
They previously raised $210m in convertible notes in October to fund their growth and solidify their position in the digital asset space. By launching these new investment products Blockstream is joining other big financial institutions to offer Bitcoin funds, cementing their position in institutional crypto finance.
As the crypto space evolves Blockstream’s move shows the growing demand for regulated institutional grade Bitcoin lending products and it’s opening the door to a new era of financial innovation in the digital asset space.
