Bitcoin Life Insurance Innovator Launches Bitcoin Private Credit Fund
Meanwhile Group, a Bitcoin life insurance innovator supported by notable figures like Sam Altman and Gradient Ventures, has announced the launch of a new private credit fund denominated in Bitcoin. The closed fund aims to provide investors with a conservative yield in Bitcoin while lending funds in BTC to institutional counterparties at the discretion of the fund managers. Meanwhile Advisors, the group’s subsidiary, targets a 5% yield for the Meanwhile BTC Private Credit Fund term. By vetting loan recipients, the fund aims to mitigate risks associated with retail platforms that primarily lend to individuals. Investors will contribute USD, which will be converted into BTC at the fund’s closure.
Meanwhile Group Expands into Bitcoin
Meanwhile Group made headlines earlier this year with the launch of Meanwhile Insurance, a Bermuda-based company that accepts premiums and pays benefits exclusively in Bitcoin. The company is currently limited to serving customers in the United States but plans to expand its services to citizens of other countries. Meanwhile Insurance offers whole life insurance policies that provide a cash value in BTC along with a death benefit. The recent move by Meanwhile Group aligns with the growing interest from institutional investors in Bitcoin and other cryptocurrencies.
Bitcoin Resilient Amid Financial Markets Downturn
Bitcoin has shown resilience by surging to a more than 19-month high despite a downturn in global markets. The cryptocurrency climbed 5.8% to reach $42,000 and maintained its position just below that level. In contrast, global shares and bonds have been struggling with losses. This divergence highlights the current low correlation between cryptocurrencies and other traditional macro assets. Bitcoin’s correlations with stocks and gold have diminished as factors within the crypto market drove a significant surge in its value. One key driver behind the gains is anticipation of the United States approving its first spot Bitcoin exchange-traded funds (ETFs).
Hot Take: Institutional Investment Rising?
The launch of Meanwhile Group’s Bitcoin private credit fund is another indication of the increasing interest and acceptance of cryptocurrencies among institutional investors. As more established players enter the Bitcoin space, it further validates cryptocurrencies as viable investment assets. The fund offers institutional investors the opportunity to unlock the full value of their BTC holdings without compromising ownership, presenting a unique opportunity for optimized returns. This development signals a growing trend of institutional investment in Bitcoin, which could have significant implications for the future of the cryptocurrency market.
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