Sam Altman-backed crypto startup seeking investments for BTC Private Credit Fund

Share This Post

Meanwhile Group has introduced a novel Bitcoin investment vehicle called the Meanwhile BTC Private Credit Fund LP through its subsidiary, Meanwhile Advisors, according to a Dec. 7 press release.

The startup is backed by notable investors, including Sam Altman and Gradient Ventures, and raised $20 million in its recent seed funding round.

Meanwhile is looking to raise $100 million and offers a 5% yield in Bitcoin. The fund’s strategy aims to increase investors’ Bitcoin holdings without requiring additional principal investment. Anchorage Digital will serve as custodian for the fund.

Meanwhile Group co-founder and CEO Zac Townsend said the fund aims to foster a robust Bitcoin economy by creating solid financial products that bridge fiat currencies and cryptocurrencies.

Bitcoin Private Credit Fund

Meanwhile Advisors aims to leverage its proficiency to lend Bitcoin to a meticulously selected group of institutional borrowers, ensuring a higher degree of safety and creditworthiness than the risks usually encountered in retail-centric lending platforms.

Investors will contribute U.S. dollars, which will be converted to Bitcoin and lent out to generate a 5% return in Bitcoin. Townsend said this will result in investors accumulating more Bitcoin as its value increases without investing more principal.

Townsend also highlighted the fund’s conservative lending approach to institutional borrowers, contrasting it with the strategies of failed crypto lenders like BlockFi and Celsius. He pointed out the closed-end structure of the fund as a safeguard against insolvency risks.

The fund has a minimum investment requirement of $250,000 and a total term of seven years — broken down into a three-year investment period and a four-year harvest period, during which returns are distributed to investors.

The fund has a unique fee structure with a 2% management fee and a 20% carried interest fee, both charged in Bitcoin. This approach aligns the fund’s success with appreciating Bitcoin rather than fiat currency.

ETF hype

The launch coincides with heightened anticipation for a U.S. spot Bitcoin ETF filed by giants like BlackRock and Fidelity Investments in recent months.

According to Townsend, such an ETF would complement the Meanwhile fund by increasing institutional interest in Bitcoin, thereby boosting its value and the attractiveness of the fund’s Bitcoin-denominated returns.

Townsend said:

“As the digital asset economy grows, institutional investors will look for innovative ways to activate their exposure to the asset class, and we believe Meanwhile is uniquely situated to deliver this strategy given its expertise within the insurance business.”

Industry insiders believe the SEC will approve the applications in the coming weeks as the regulator’s discussions with the applicants seem to have reached an advanced stage as of Dec. 7.

The post Sam Altman-backed crypto startup seeking investments for BTC Private Credit Fund appeared first on CryptoSlate.

Read Entire Article
spot_img
- Advertisement -spot_img

Related Posts

Bitcoin Heading Towards Major Support: Here’s Why Holding $95,000 is Very Critical

The post Bitcoin Heading Towards Major Support: Here’s Why Holding $95,000 is Very Critical appeared first on Coinpedia Fintech News As the crypto markets advance towards the yearly close, the

Bitcoin Heading Towards Major Support: Here’s Why Holding $95,000 is Very Critical

The post Bitcoin Heading Towards Major Support: Here’s Why Holding $95,000 is Very Critical appeared first on Coinpedia Fintech News As the crypto markets advance towards the yearly close, the

SpacePay’s Solution: A Deep Dive Into How 0.5% Fees Change Payment Economics

The post SpacePay’s Solution: A Deep Dive Into How 05% Fees Change Payment Economics appeared first on Coinpedia Fintech News In the payment processing sector, fees might seem like small

Moo Deng Crypto Climbs 70% On News Of Buterin’s Baby Hippo Adoption

Crypto and animal welfare have never been more interconnected, using blockchain to fund and promote animal rights initiatives around the globe At Thailand’s Khao Kheow Open Zoo, Ethereum

Vivek Ramaswamy’s Strive Targets BTC Exposure With Bitcoin Bond ETF Proposal

Strive Asset Management, co-founded by Republican Vivek Ramaswamy, has introduced a proposal for a ‘Bitcoin Bond’ exchange-traded fund (ETF) This fund aims to offer exposure to bitcoin

Russian Companies Using Bitcoin For International Payments To Evade Sanctions – Report

Recent reports revealed that Russian companies have begun using Bitcoin and other digital assets in international trade to bypass sanctions The country’s Finance Minister also shared the