Meanwhile Advisors, a subsidiary of Meanwhile Group, has recently unveiled a revolutionary financial product within the cryptocurrency domain – the Meanwhile BTC Private Credit Fund. The announcement comes on the heels of a successful seed funding round of $20 million in June, which was led by prominent figures such as Sam Altman, Lachy Groom, and Gradient Ventures.
Geared towards institutional investors, the Bitcoin private credit fund offers a conservative Bitcoin-denominated yield, aiming for a five percent return over its closed term. However, it emphasizes risk mitigation by lending Bitcoin to a diverse range of institutional counterparties, coupled with a rigorous creditworthiness assessment.
Zac Townsend, CEO of Meanwhile Group, highlights the importance of robust capital markets in realizing the potential of a thriving Bitcoin economy. He positions Meanwhile Advisors as a pioneer in the financial sector, bridging the gap between fiat money and cryptocurrency.
The fund operates under a unique structure designed for tax efficiency, with investors contributing in USD, which is then promptly converted into BTC after a single close. This shield the fund from currency risks during lending activities, with fees denominated in BTC to align with investor interests.
Alyse Killeen, Managing Partner of Stillmark, a bitcoin-focused venture capital firm, lauds Meanwhile Advisors’s BTC private credit fund as an innovative investment opportunity. She views it as a testament to the significant advancements in the Bitcoin ecosystem, amidst the expansion of the digital asset economy.
As we delve into the historic background of this development, we find that institutional investors are actively exploring inventive ways to capitalize on the burgeoning digital asset class. Furthermore, there is heightened interest surrounding the potential approval of a spot Bitcoin ETF by the US SEC, reflecting the growing acceptance and integration of cryptocurrencies in traditional financial markets.
In conclusion, the introduction of the Meanwhile BTC Private Credit Fund represents a significant milestone in the evolution and integration of cryptocurrency into the institutional investment landscape. As the digital asset economy continues to expand, we can expect to see more innovative financial products and structures that cater to the needs and interests of institutional investors.
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