Crypto Hedge Fund Plans to Raise Up to $27M for Bitcoin-Focused Fund
BXB Capital, a crypto hedge firm owned by Binance Korea co-founders, is looking to launch a new $27 million fund that will raise capital exclusively in Bitcoin, Fortune reported on Monday. The fund has reportedly secured $10 million from high-profile crypto investors.
BXB Fund to Raise Capital Exclusively in Bitcoin
Singapore-based crypto hedge fund BXB Capital is planning to launch a bitcoin-focused fund in July 2023, according to Fortune. With the new fund, BXB adopted a different approach as it looks to raise capital exclusively in Bitcoin, with a final target of up to 1,000 BTC (around $27 million). The firm has already secured around 400 BTC, or roughly $10 million, from investors.
The move represents BXB’s first significant push into securing outside capital. While they refused to name the investors participating in the fundraising, BXB co-founders J.J. Petersen and Alex Friedberg said they are high-profile crypto figures.
The new fund stands out as it has its limited partners (LPs) invest directly with BTC, with all trading strategies and returns also in the world’s biggest cryptocurrency. According to Petersen, many crypto-oriented investors no longer want to hold more dollars, so they see the new BXB fund as a unique opportunity to earn in Bitcoin without tapping lending or yielding products.
“You basically need to earn [more] dollars to outpace inflation. If you earn more Bitcoin, you just own your token, so you increase your total percentage of the circulating supply permanently.”– said BXB Capital co-founder J.J. Petersen.
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Who are BXB’s co-founders?
Peterson and Friedberg became known when they started trading the ‘kimchi premium’ – a trading strategy that seeks to capitalize on cost differences between the spot price of Bitcoin in South Korea and other markets. This strategy became popular after it was employed by the now-collapsed Three Arrows Capital and FTX’s sister firm Alameda Research.
“There weren’t many people in 2017 and 2018 who were doing things at large scale. And it put us in a lot of rooms.”– Petersen said.
Four years ago, Petersen and Friedberg rolled out the first stablecoin backed by the Korean won, dubbed “KRWb.” Most notably, the pair has co-founded Binance Korea, the Korean arm of the biggest crypto exchange in the world, which shut down operations in 2020 due to poor trading volume. However, the company returned to the East Asian nation earlier this year after acquiring a majority stake in GOPAX.
Do you think the unique approach of raising funds and making returns exclusively in Bitcoin will attract many investors? Let us know in the comments below.