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