Learn Concept: The New Era of Bitcoin Private Credit Funds

By: Eliza Bennet

Meanwhile Group, a startup supported by prominent investors like Sam Altman and Gradient Ventures, has introduced a unique Bitcoin-based investment vehicle called the Meanwhile BTC Private Credit Fund LP through its subsidiary, Meanwhile Advisors. The company aims to accumulate $100 million for the fund, promising a 5% yield in Bitcoin.

A noteworthy aspect of this fund is that investors will contribute in U.S. dollars, which will then be converted into Bitcoin and lent out, generating a 5% return in Bitcoin. This allows investors to increase their Bitcoin holdings without making additional principal investments. Therefore, this strategy promises higher rewards for investors interested in expanding their cryptocurrency portfolios, particularly focusing on Bitcoin.

Unlike other retail-oriented lending platforms, Meanwhile Advisors plans to lend Bitcoin to a carefully selected pool of institutional borrowers, offering more security to the investors. The fund's structure incorporates an investment period of three years and a four-year harvest period, during which the returns are distributed to investors.

Such inventive financial products underscore the growing relevance of cryptocurrencies as investment assets and their increasing integration into the traditional financial system.