Re7 Capital will soon launch a Bitcoin yield fund, thus entering a hot sector of crypto. The fund is expected to be available to investors beginning this month on Starknet.
Starknet is a Layer 2 blockchain that claims to validate off-chain transactions using advanced mathematics and cryptography. This aims to manage scalability limitations on Ethereum and on Bitcoin.
Re7 Capital is a DeFi-centric investment firm specialising in yield and liquid strategies as well as on-chain vault management. The firm reports that it currently oversees more than $1 billion in value.
The Bitcoin Yield Fund will be tokenized and said to be accessible not just to institutions.
Via X, Re7 said that they have secured commitments of ~2,000 BTC from a group of allocators.
The company has yet to share its expectations for the fund’s yield.
Eli Ben-Sasson, Co-Founder and CEO of StarkWare, and a board member of the Starknet Foundation, described the arrangement as a declaration of their network’s promise.
“And for Starknet users, builders, and enthusiasts, it is an exhilarating moment,” said Ben-Sasson. “It’s barely a year since Starknet announced it was starting a push to connect the dots of the blockchain space and operate on both Ethereum and Bitcoin. And Starknet is doing it, one dot-connecting step at a time. This particular development both helps secure Starknet and brings more utility to institutions, retail users, DeFi devotees, and others.”
The fund will be available in two formats: an institutional offering and a tokenized version, with the institutional product, designed for professional investors. The tokenized version enabled by Midas will “offer more open access, with the intention of allowing broader participation in Bitcoin-native yield.”
Re7’s strategy is described as emphasizing Bitcoin accumulation and capital protection, taking a market-neutral approach to generate sustainable yield. The fund will utilize derivatives trading to generate premium and capture positive carry, alongside passive yield opportunities within the BTC DeFi ecosystem.
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