Meanwhile Advisors to Raise $100 Million for Bitcoin Private Credit Fund
Crypto startup Meanwhile Advisors, backed by entrepreneur Sam Altman, has announced its plans to raise $100 million for a Bitcoin private credit fund. The fund, called Meanwhile Private Credit Fund, aims to provide institutional investors with access to BTC and target an additional 5% yield in the cryptocurrency.
Bitcoin Rally Sparks Launch of Meanwhile Advisors Fund
Meanwhile Advisors has launched the fund as Bitcoin continues its recent rally. Prices are currently at around $43,200 after falling from the $44,000 level. Zac Townsend, CEO of Meanwhile Group, believes that Bitcoin will appreciate significantly in the future and that the fund offers investors a unique opportunity to increase their exposure to digital assets.
The Structure of the Meanwhile BTC Private Credit Fund
The Meanwhile BTC Private Credit Fund is structured as a single-close, closed-end fund. Limited partners (LPs) contribute US dollars to the fund, which is immediately converted to Bitcoin. This Bitcoin is then lent out to borrowers to generate the targeted 5% return. This structure allows LPs to accumulate more Bitcoin if its price appreciates during the fund’s lifecycle without requiring additional investment.
Innovative Fee Approach
The Meanwhile BTC Private Credit Fund charges a 2% management fee and a 20% carried interest fee, both in Bitcoin. The carried interest fee only applies when LPs’ Bitcoin holdings increase. This fee structure ensures that Meanwhile benefits from generating more Bitcoin for LPs rather than from price appreciation itself.
Risk Management and Custodian
The closed structure of the fund eliminates the risk of a “bank run” scenario that can lead to insolvency. The fund focuses on making conservative loans to creditworthy institutional borrowers to mitigate risks. Anchorage Digital serves as the fund’s custodian.
Bitcoin’s Current Market Performance
At the time of writing, Bitcoin is trading at $43,200, marking a decrease of nearly 2% within the last 24 hours. However, it has maintained a 14% increase over the past seven days and is holding strong at the support level of $43,000.
Hot Take: Meanwhile Advisors Raises $100 Million for Bitcoin Private Credit Fund
Crypto startup Meanwhile Advisors, backed by Sam Altman, has launched the Meanwhile Private Credit Fund to provide institutional investors with access to BTC and target an additional 5% yield in cryptocurrency. The fund’s innovative fee approach ensures that Meanwhile benefits from generating more Bitcoin for investors rather than from price appreciation itself. With a closed structure and conservative loan focus, risk management is prioritized. Bitcoin’s current market performance shows a slight decrease in price but maintains a significant increase over the past week. This move by Meanwhile Advisors demonstrates growing interest in Bitcoin investment opportunities.
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