To establish a fund specializing in Bitcoin
BXB Capital, an investment company in Singapore, has revealed plans to establish a new fund dedicated to Bitcoin with a scale of about 3.7 billion yen ($27 million). The fund, which will be entirely Bitcoin-centric, from funding to trading strategy, is scheduled to launch in July 2023.
According to a report by Fortune magazine on the 22nd, the new fund will raise about 3.7 billion yen ($27 million) in Bitcoin alone, with a final fundraising target of up to 1,000 BTC. At the moment, it has already secured about 400 BTC (about 1.3 billion yen) from investors.
BXB is a cryptocurrency hedge fund owned by Binance Korea co-founders JJ Petersen and Alex Friedberg. The newly established bitcoin-only fund will raise funds in bitcoin from a limited partner (LP), and will operate trading strategies and return payments exclusively in bitcoin.
According to Petersen, funds whose strategy is to increase their bitcoin holdings are in the minority. He also pointed out that people’s mindset is gradually changing and that the idea of increasing wealth with fiat currencies such as the US dollar is now less common.
Support for Bitcoin as a safe-haven asset is growing, according to the latest Bloomberg Markets Live Pulse survey. Specifically, 7.8% of institutional investors and 11.3% of retail investors chose Bitcoin as a safe haven asset, outpacing the US dollar (7.8% institutional investors and 10.2% retail investors). rice field.
Amidst this, a new BXB fund that allows investors to profit in bitcoin without relying on loans or yield-providing products could present a unique opportunity, he said.
Essentially, we need to make more dollars to maintain our purchasing power under inflation. However, if you earn more bitcoin, you can keep your tokens, and as a result, you can permanently increase the percentage of its circulation.
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BXB Capital was founded in 2017 as a proprietary trading prop firm, initially engaging in trading that took advantage of the price differential between Bitcoin in South Korea and other markets, dubbed “Kimchi Premium”.
In 2020, BxB was acquired by Binance and became part of a joint venture to launch Binance Korea, the Korean arm of the world’s largest cryptocurrency exchange. However, due to liquidity issues and low trading volumes, it ceased operations after just one year.
With the issue of the US debt ceiling becoming a focus, there is also a move to shift reserves from government bonds to virtual currencies. Tether, the world’s largest stablecoin issuer of USDT, has announced that it will regularly invest up to 15% of its profits in Bitcoin. The move suggests that Bitcoin is increasingly in demand as a financial safe haven, a so-called “safe haven.”
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US presidential candidate Robert F. Kennedy Jr. has also said that he will accept donations to his election campaign in Bitcoin.
What is Safe Haven
In the world of investment, it refers to a safe asset, a safe haven for funds, etc. It is required when stock prices plunge worldwide due to the effects of financial crises and economic recessions, and representative examples include Swiss francs and gold. Bitcoin has an upper limit of 21 million BTC, and some argue that it has the characteristics of a safe-haven asset because it is less susceptible to the influence of governments and financial institutions due to its decentralized network.
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