The cryptocurrency fund BXB Capital will launch in July a structure focused on investments in digital gold. The firm has secured commitments from investors for 400 BTC (~$10 million) and plans to raise up to 1,000 BTC (~$27 million), writes Fortune.
A defining feature is that capital-raising, trading and delivering yields are conducted exclusively in bitcoin.
The fund’s co-founders are former Binance Korea co-founders Alex Friedberg and JJ Petersen. Initially after its inception, BXB Capital focused on «kimchi premium» arbitrage, gradually adding other strategies.
“Investors are rethinking the framework and are no longer trying to concentrate capital solely in US dollars,” Petersen explained.
The executive noted that many crypto investors want to cut exposure to fiat currencies. The fund will allow them to generate yields in bitcoin without resorting to lending or yield farming.
“Essentially, you need to earn more dollars to outrun inflation. If you earn more from operations in the primary cryptocurrency, you simply own more of the coins, increasing your share of the available supply,” he explained.
Tether will allocate up to 15% of profits for bitcoin purchases to diversify and strengthen its reserve portfolio.