After years of scandals, including the spectacular implosion of FTX, Blockstream is betting that deep-pocketed investors are ready to revisit bitcoin investment strategies that provide passive income, especially if they do not have to compromise on safety.
The Montreal-based firm, led through crypto pioneer and Satoshi Nakamoto’s first collaborator Adam Back, is in control of assets with a budget set as a component of its new Blockstream Asset Management (BAM) division.
Although investors now have a variety of bitcoin instruments (futures and futures ETFs, budgeting aimed at 2x bitcoin yields, Microstrategy’s convertible bonds, and even Coinbase’s newly revived bitcoin-backed loans), the menu for comprehensive and risk-managed selling strategies, especially for establishments and accredited investors remain limited. Blockstream needs to fill this gap.
“We need to be the service provider that opens the door to this new asset elegance beyond exposure and beta,” explains Sean Bill, chief investment officer at Blockstream. “We’re going to have to supply an adjusted smart threat return to investors in a category where they can’t access some of those methods right now. “Bill joined Blockstream in November after being CIO at Prime Meridian Capital Management, a hedge fund targeting FinTech, and as treasurer and CIO of the Santa Clara Valley Transit Authority.
Budget 3, the Blockstream Income Fund, the Funda Alpha Blockstream and the Make Blockstream fund, are designed to please a wide appetite and threat objectives.
Two of the budget, Revenue Source and Alpha, are expected to be released this quarter, with the next comeback coming at the time when corporate plans a global rollout: the U. S. budget will be registered in Delaware, while the offshore versions will be founded in the Cayman Islands. The paid design is still being finalized.
Blockstream The first to introduce Bitcoin products centered on the institution, however, brings established reference points. The corporate is known for its paintings in liquid netintings, a generation of Bitcoin side chain that allows faster and more confidential transactions and the issuance of virtual assets such as Stablecoins and Stablecoins and Stablcoins and Stablcoins and Stablecoins tokenized values.
To support its funds, Blockstream will partner with platforms including Unchained Capital, Hodl Hodl, and Debifi, which will originate loans and provide liquidity. They rely on multi-signature escrow contracts to manage bitcoin collateral, enforce LTV thresholds, and handle liquidations if necessary. Blockstream also plans to partner with exchanges and custodians to bolster its lending and borrowing operations.
The firm’s pitch emphasizes transparency and risk control. Custody for offshore funds will be handled by Komainu, a Nomura-backed custodian based in Jersey, in which Blockstream recently invested $75 million. For U.S. operations, the company will use a “qualified custodian” as needed, according to Bill. Monthly net asset value (NAV) reporting, detailed quarterly disclosures, and independent audits—currently being finalized—will be standard.
“We already tried Bitcoin’s functionality methods before the FTX and other disorder that has happened in recent years,” Back, CEO of Blockstream said. “Because we use the safe technology of reliable Bitcoin, associations with Guard Multi-Sig, we remain far from this type of technological threat, and institutional and professional investors are increasingly aware of the threat of the platform. We hope classes are learned. »