Bitcoin Giant Blockstream Expands into Institutional Investment With Multi-Billion-Dollar Backing

Bitcoin infrastructure provider Blockstream has officially announced the launch date for its highly anticipated institutional-grade Bitcoin investment funds.

Set to go live on April 1st, the funds will introduce new Bitcoin-backed lending and investment solutions, with external capital acceptance beginning on July 1.

The crypto lending industry faced significant turmoil following the collapse of FTX, which led to a wave of bankruptcies among major lenders. However,  institutional demand for Bitcoin-native financial products continues to grow.

Blockstream revealed that its new investment vehicles include a Bitcoin-backed lending fund, a USD-collateralized borrowing fund, and a hedge fund strategy offering institutional exposure to Bitcoin markets.

The lending funds will allow investors to access liquidity without selling their Bitcoin. Blockstream has secured a multi-billion-dollar investment to support these initiatives, as first reported by Bloomberg.

Earlier this year, Blockstream unveiled two institutional investment funds – Blockstream Income Fund and Blockstream Alpha Fund – to provide direct exposure to its Bitcoin ecosystem. The Income Fund offers USD-denominated yields by issuing Bitcoin-backed loans ranging from $100,000 to $5 million.

Meanwhile, the Alpha Fund focuses on portfolio growth through infrastructure-based revenue streams, such as Lightning Network node operations. These funds mark Blockstream’s expansion into asset management, thereby offering institutional investors new ways to engage with Bitcoin-backed financial products. The move placed it alongside already established crypto investment firms such as Grayscale, Pantera, and Galaxy Digital.

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Additionally, the firm recently expanded its presence in Asia with the opening of a new office in Tokyo.