Blockstream introduces institutional-grade Bitcoin investment vehicles through its new asset management arm, offering income and alpha-focused funds for accredited investors, with a third fund planned.
Blockstream, a leading Bitcoin infrastructure company, has launched a new division, Blockstream Asset Management (BAM), aimed at providing institutional and accredited investors with innovative Bitcoin BTC $82 538 24h volatility: 0.0% Market cap: $1.64 T Vol. 24h: $28.93 B investment opportunities.
As part of this initiative, BAM is introducing two investment funds—the Blockstream Income Fund and the Blockstream Alpha Fund—which are set to go live before the end of Q1 2025. Additionally, a third fund is planned for later this year.
Introducing Blockstream Asset Management (BAM)
Institutional-grade Bitcoin investment solutions are here.
Explore our new funds:
✅ Income Fund – Stable USD returns, backed by Bitcoin collateral.
✅ Alpha Fund – Enhanced returns with active management.— Blockstream (@Blockstream) January 23, 2025
The 506(c) Exemption
Blockstream’s new funds operate under the 506(c) exemption, a provision under United States securities law that allows investment funds to be marketed publicly but limits participation to accredited investors—typically individuals or institutions meeting specific wealth or income requirements.
Unlike traditional investment offerings that often restrict advertising, the 506(c) exemption enables broader visibility while ensuring compliance with regulatory safeguards. By leveraging this framework, BAM aims to attract qualified investors seeking exposure to Bitcoin-focused investment products.
The division seeks to bridge the gap between traditional finance and the digital asset space, offering structured investment vehicles designed for long-term capital preservation and growth.
The two inaugural funds cater to distinct investor preferences. According to the company, Blockstream Income Fund is designed for yield-focused investors, providing USD-denominated returns by offering Bitcoin-backed loans with conservative loan-to-value ratios. It aims to generate stable returns, with projected yields ranging from high single digits to low teens in percentage terms.
As for Blockstream Alpha Fund, the fund is targeted at sophisticated investors. It adopts a high-performance, risk-adjusted strategy within the Bitcoin ecosystem.
Blockstream also explained that it combines multiple trading methods, including derivatives trading, event-driven strategies, and Lightning Network infrastructure-based revenue models.
Beyond the Funds: Blockstream’s Expanding Institutional Push
Both funds have undergone months of strategic development, spearheaded by Blockstream CEO Adam Back and Chief Investment Officer Sean Bill, who joined the company in November 2024.
Bill, a seasoned expert with nearly three decades in portfolio and risk management, played a key role in structuring the funds to align with institutional investor needs.
“Everything about these products is designed not only to meet the evolving needs of institutional and high-net-worth investors but also to accelerate the Bitcoin flywheel—enhancing adoption, liquidity, and the broader Bitcoin ecosystem while offering a compelling value proposition in today’s financial landscape,” Bill said.
Meanwhile, the launch of BAM comes as Blockstream continues to expand its footprint in institutional finance. The company recently raised $210 million in a Series B funding round, boosting its valuation to $3.2 billion. A significant portion of this capital has been allocated toward Bitcoin mining infrastructure, reinforcing Blockstream’s commitment to securing the Bitcoin network.
Additionally, Blockstream has partnered with major financial institutions to drive institutional Bitcoin adoption. Notably, it collaborated with Macquarie Group on a pilot investment in Bitcoin mining, exploring carbon-neutral mining initiatives.
The company has also worked with Aker and Square to develop renewable-powered Bitcoin mining facilities, aligning with the broader industry push for sustainable mining solutions.
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