The company led by Adam Back is launching three new institutional funds, strengthening its position in the Bitcoin-related financial services sector.
According to Bloomberg, Blockstream has announced that it has secured a multibillion-dollar investment to launch three new institutional funds. The initiative will begin on April 1.
Details of the offering
These products will allow large investors to use their bitcoins flexibly, obtaining dollars when needed without having to sell their bitcoins. They will also be able to gain exposure to the sector in more sophisticated ways than simply buying.
The three funds are as follows:
- Blockstream Income Fund: this fund will offer loans in U.S. dollars with bitcoin as collateral, focusing on loans between $100,000 and $5 million;
- Blockstream Alpha Fund: focused on portfolio growth through Lightning Network infrastructure;
- Blockstream Yield Fund: this will allow investors to borrow bitcoins by depositing U.S. dollars as collateral.
Blockstream’s institutional investment solutions will officially debut on April 1, while external investors will be able to start participating from July 1.
The 2022 bear market reduced liquidity in the sector, with the closure of lending companies such as BlockFi, Genesis Global Capital, Voyager Digital, Three Arrows Capital, and Celsius. Blockstream’s strategic expansion, supported by a $210 million funding round led by Fulgur Ventures last October, positions the company directly against players like Grayscale, Pantera, Galaxy Digital, and Crypto.com.
