BXB Capital are to launch a new fund in July, and it is a crypto hedge fund that is co-founded by J.J. Petersen and Alex Friedberg, who are also the co-founders of Binance Korea, the Korean arm of the world’s largest crypto exchange. BXB Capital is not your typical crypto fund. Unlike most funds that raise capital in fiat currencies and trade in various crypto assets, BXB Capital is raising capital exclusively in Bitcoin and will also only trade in Bitcoin and provide returns in Bitcoin.
This means that investors who participate in the fund will not have to worry about converting their fiat into crypto or vice versa, and they will also benefit from any appreciation of Bitcoin’s value over time.
The fund has a target of raising up to 1,000 BTC, which is equivalent to around $27 million at the current price. So far, the fund has secured around 400 BTC, or roughly $10 million, from investors who are high-profile crypto figures, according to Petersen and Friedberg. The fund will use various trading strategies to generate profits in Bitcoin, such as arbitrage, market making, and algorithmic trading.
The fund’s co-founders have a track record of successful crypto ventures. Petersen and Friedberg started trading the ‘kimchi premium’, a phenomenon where the price of Bitcoin in South Korea is higher than other markets, back in 2017 and 2018. They also launched the first stablecoin backed by the Korean won, called KRWb, in 2019. In 2020, they co-founded Binance Korea, which later shut down due to low trading volume but returned to the market earlier this year after acquiring a majority stake in GOPAX, a local crypto exchange.
Petersen and Friedberg believe that Bitcoin is the ultimate store of value and that more investors are shifting their mindset from accumulating more fiat to accumulating more Bitcoin. They see their fund as a unique opportunity for investors who want to earn more Bitcoin without exposing themselves to risky lending or yielding products.
If you want to learn more about BXB Capital and its bitcoin-focused fund, you can visit their website at bxb.capital or follow them on Twitter at @BXBCapital.