- According to a recent announcement by the company, the closed-end fund aims to provide investors with a “tax-exempt” return in Bitcoin.
- According to the company, by carefully monitoring borrowers, the fund aims to reduce the risks associated with retail platforms that primarily lend to individuals.
- Meanwhile Group gained attention when it launched Meanwhile Insurance, a Bermuda-based Bitcoin life insurance, earlier this year.
Meanwhile, supported by significant figures like Sam Altman and Gradient Ventures, announced a private Bitcoin credit fund: What is the fund aiming for?
Meanwhile Launches Credit Fund in Bitcoin
Meanwhile Group, the Bitcoin life insurance innovator supported by figures like Sam Altman and Gradient Ventures, has announced a new private credit fund in Bitcoin. According to a recent announcement by the company, the closed-end fund aims to provide investors with a “tax-exempt” return in Bitcoin and, depending on the discretion of fund managers, extends Bitcoin funding to its corporate counterparts.
Meanwhile Advisors, a subsidiary of the group, targets a 5% return for the Meanwhile BTC Private Credit Fund. According to the company, by carefully monitoring borrowers, the fund aims to reduce the risks associated with retail platforms that primarily lend to individuals. Investors in the fund will contribute in US dollars, and these dollars will be converted to BTC at the fund’s closing. Loans will be initiated in BTC, and fees will also be collected in cryptocurrency.
Zac Townsend, Co-Founder and CEO of Meanwhile Group, said, “This private credit fund offers a unique potential for institutional investors to lock in the full value of BTC assets, not jeopardize their ownership, and evaluate a unique opportunity for optimized returns by avoiding the risk of traditional financial markets.”
Meanwhile Group gained attention when it launched Meanwhile Insurance, a Bermuda-based Bitcoin life insurance that pays and receives premiums in Bitcoin earlier this year. Currently, the service is offered in a limited manner only to customers in the United States, but the company is in the process of expanding its services to citizens of other countries.
Meanwhile Insurance offers whole life insurance policies that provide death benefits in addition to cash value. The latest move by Meanwhile Group is in line with the increasing interest from institutional investors in Bitcoin and other cryptocurrencies.
In 2021, New York Digital Investment Group secured $100 million in funding from major insurance providers with the aim of launching “Bitcoin-backed solutions for US-based life insurance and retirement providers.” The entry of established players into the Bitcoin space reflects the increasing acceptance and recognition of cryptocurrencies as effective investment assets.
Bitcoin Shows Resistance While Financial Markets Decline
Bitcoin (BTC) has shown resistance, reaching its highest level in over 19 months even during a period of global market decline. The cryptocurrency reached $44,000 and then maintained its position just below this level. In contrast, global stocks and bonds have been dealing with losses since the beginning of the week.
According to Sean Farrell, head of digital asset strategy at Fundstrat Global Advisors LLC, this distinction highlights the low correlation between current cryptocurrencies and other traditional macro assets. The decreased correlation of Bitcoin with stocks and gold in 2023, despite specific factors in the crypto market causing a significant 152% increase in the value of the largest digital asset, is due to factors affecting the cryptocurrency market.
One of the main factors behind the gains is the increased likelihood of the United States approving the first spot Bitcoin exchange-traded funds (ETFs), which could expand demand for the token. The 90-day correlation coefficient between Bitcoin and MSCI Inc.’s global stock index has dropped from 0.60 to 0.18 since the beginning of the year. The same analysis shows that the correlation between token and spot gold has approached zero, dropping from 0.36. A correlation coefficient of 1 indicates that assets move simultaneously, while minus 1 indicates opposite movements.
