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Crypto Hedge Fund Plans to Raise Up to $27 Million for Bitcoin-Focused Fund CryptoBlog

Neither the author, Tim Fries, nor this website, The Tokenist, provides financial advice. Please review our website policy before making any financial decisions.

BXB Capital, a crypto hedge company owned by the co-founders of Binance Korea, is looking to launch a new $27 million fund that will raise capital exclusively in Bitcoin, Fortune reported Monday. The fund reportedly secured $10 million from high profile crypto investors.

The BXB fund will raise capital exclusively in Bitcoin

Singapore-based crypto hedge fund Capital BXB plans to launch a bitcoin-focused fund in July 2023, according to Fortune. With the new fund, BXB has taken a different approach as it seeks to raise capital exclusively in Bitcoin, with an end goal of up to 1,000 BTC (about $27 million). The company has already secured about 400 BTC, or about $10 million, from investors.

This decision represents BXB’s first significant effort to obtain outside capital. Although they declined to name the investors participating in the fundraiser, BXB co-founders JJ Petersen and Alex Friedberg said they were high-profile crypto figures.

The new fund stands out because its limited partners (LP) invest directly with BTC, with all trading strategies and returns also in the world’s largest 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 exploiting lending or yield products.

“You basically have to win [more] dollars to beat inflation. If you earn more Bitcoin, you only own your token, so you increase your total percentage of circulating supply permanently.

– said BXB Capital co-founder JJ Petersen.

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Who are the co-founders of BXB?

Peterson and Friedberg rose to prominence when they started trading the ‘kimchi bounty‘ – a trading strategy that seeks to capitalize on the cost differences between the spot price of Bitcoin in South Korea and other markets. This strategy became popular after being employed by the now-collapsed sister company of Three Arrows Capital and FTX, Alameda Research.

“There weren’t a lot of people in 2017 and 2018 doing things at scale. And that put us in a lot of rooms.

– said Petersen.

Four years ago, Petersen and Friedberg launched the first Korean won-backed stablecoin, dubbed “KRWb”. Most notably, the pair co-founded Binance Korea, the Korean arm of the world’s largest crypto exchange, which shut down operations in 2020 due to low trading volume. However, the company returned to the East Asian country earlier this year after acquiring a majority stake in GOPAX.

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Do you think the unique approach of raising funds and generating returns exclusively in Bitcoin will attract many investors? Let us know in the comments below.

About the Author

Tim Fries is the co-founder of The Tokenist. He has a B.Sc. in Mechanical Engineering from the University of Michigan and an MBA from the University of Chicago Booth School of Business. Tim was a senior partner on the investment team in the US Private Equity division of RW Baird and is also a co-founder of Protective Technologies Capital, an investment firm specializing in detection, protection and control solutions.

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