According to Bloomberg, Canadian-based crypto company Blockstream has secured a multimillion-dollar investment to launch three crypto-backed funds on April 1, 2025. Notably, two investment funds will focus solely on Bitcoin lending, while the third one will implement investment approaches designed to maximize returns and minimize risk as in hedge funds.
Notably, the crypto lending niche has suffered since the famous crypto exchange FTX crashed in 2022. The collapse caused tampered balance sheets, resulting in massive losses for lenders. Thus, there is a need for Blockstreams, lending-focused investment funds.
Three New Investment Funds
The first investment fund will offer Bitcoin-backed loans, enabling investors to borrow against their bitcoin (BTC) holdings. Investors can use their BTC as collateral for a loan, borrowing cash without swapping their assets. This solution will provide liquidity while allowing investors to retain their stash. Meanwhile, repayment will be with interest, providing a convenient financing option.
The second fund will allow investors to borrow cryptocurrency using US dollars as collateral. This solution lets investors gain cryptocurrency exposure without selling their US dollar holdings, allowing them to achieve safe exposure to cryptocurrencies while maintaining their fiat currency bags.
The third investment fund will allow investors to access hedge fund expertise and benefit from its strategic investment approach. To optimize returns, it will generate returns through advanced investment methods and sophisticated techniques, such as quantitative modeling, risk management, and asset allocation, notwithstanding market conditions.
Crypto Investment Funds Boom
Remarkably, the wide range of crypto adoption has led to the launch of different funds in recent years. Starting last year, the United States Securities and Exchange Commission (SEC) approved about 10 BTC exchange-traded funds (ETF), allowing investors to gain indirect access to the world’s leading cryptocurrency.
Since its launch, The BTC ETF market has defied the odds, taking in over $40 billion from investors. Thus, many asset managers have submitted applications for different altcoin ETFs, hoping to share in the boom as investors’ crypto interests soar over the years.
Meanwhile, American President Donald Trump has boosted crypto adoption through his support for BTC and his plan to set up a strategic crypto reserve for the U.S.
