Bitcoin private credit fund launches
Crypto-focused financial services firm Meanwhile Group has launched a Bitcoin private credit fund targeted at institutional investors.
BTC Private Credit Fund, which will be managed by the group’s subsidiary investment manager, Meanwhile Advisors, will target five per cent returns.
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The group – which is backed by OpenAI chief executive Sam Altman – said that the fund will lend Bitcoin to a diverse range of institutional counterparties and has implemented “a rigorous assessment of creditworthiness” to ensure quality. It said this approach mitigates risk compared to retail-focused platforms, which predominantly lend to speculative individual investors.
“A thriving Bitcoin economy is inevitable, but to realise this future and maximise its potential, robust capital markets are essential,” said Zac Townsend, co-founder and chief executive of Meanwhile Group. “Meanwhile Advisors is at the cutting edge of this financial revolution, building products that bridge the gap between fiat money and cryptocurrency. This private credit fund offers unparalleled potential for institutional investors to unlock the full value of their BTC holdings without compromising their ownership, seizing a unique opportunity for optimised returns.”
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Investors pay into the fund in US dollars, which are then converted into Bitcoin immediately following the fund’s single close. Meanwhile Group said that this means the fund will not take any currency risk to fund the lending activities.
Fees are charged in Bitcoin.
The fund launch follows Meanwhile Group’s $20m (£15.9m) seed funding announcement in June, led by Sam Altman, Lachy Groom, and Google’s venture capital arm Gradient Ventures.
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