Blockstream, a company specializing in Bitcoin infrastructure technology, has announced the launch of two Bitcoin-focused investment funds, the Blockstream Income Fund and Blockstream Alpha Fund, set to debut in the first quarter of 2025. 

Developed under the company’s new asset management division, Blockstream Asset Management (BAM), these funds aim to provide institutional and accredited investors with opportunities to engage with Bitcoin-backed financial instruments.

The Blockstream Income Fund is designed to generate USD-denominated yields by offering loans collateralized by Bitcoin. 

It targets loans between $100,000 and $5 million, focusing on an underserved segment of the lending market. 

Using conservative loan-to-value (LTV) ratios, the fund seeks high single-digit to low-teen yields while leveraging Blockstream’s network of Bitcoin-native businesses to maintain a pipeline of qualified borrowers.

The Blockstream Alpha Fund takes an active management approach to deliver returns through strategies such as derivatives trading, event-driven opportunities, and infrastructure-based revenue streams, including Lightning Network node operations. 

This fund is geared toward investors seeking growth within the Bitcoin ecosystem while contributing to its broader adoption.

Dr. Adam Back, Blockstream’s CEO and co-founder, stated, “With these funds, we’re providing a previously unavailable way for institutional and high-net-worth investors to access the Bitcoin ecosystem.”

Sean Bill, Blockstream’s Chief Investment Officer, emphasized that the funds align with the evolving needs of sophisticated investors while advancing the Bitcoin ecosystem’s development. 

His appointment follows Blockstream’s $210 million convertible note financing round, which supports the company’s efforts to deliver regulated Bitcoin investment solutions.

Blockstream’s move reflects a broader trend of companies, such as Grayscale and Galaxy Digital, offering Bitcoin-focused financial products. 

Institutional interest in Bitcoin and cryptocurrency continues to grow, with U.S. Bitcoin ETFs managing nearly $120 billion in assets as of early 2025.

The launch of Blockstream Asset Management underscores Bitcoin’s growing role in modern finance.

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