Sam Altman-Affiliated Meanwhile Group Introduces Bitcoin Private Credit Fund – Institutional Investment Rising?

Ruholamin Haqshanas
Last updated: | 2 min read
Source: AdobeStock / jirsak

Bitcoin life insurance innovator Meanwhile Group, backed by notable figures like Sam Altman and Gradient Ventures, has unveiled a new private credit fund denominated in Bitcoin. 

The closed fund aims to provide investors with a “conservative” yield in Bitcoin while lending funds in BTC to institutional counterparties at the discretion of the fund managers, the company said in a recent statement.

Meanwhile Advisors, the group’s subsidiary, targets a 5% yield for the Meanwhile BTC Private Credit Fund term.

By vetting loan recipients, the fund aims to mitigate risks associated with retail platforms that primarily lend to individuals, according to the company.

Investors in the fund will contribute U.S. dollars, which will be converted into BTC at the fund’s closure. 

Loans will be originated in BTC, and fees will also be charged in the cryptocurrency. 

“This private credit fund offers unparalleled potential for institutional investors to unlock the full value of their BTC holdings without compromising their ownership, seizing a unique opportunity for optimized returns,” Zac Townsend, co-founder and CEO of Meanwhile Group, said. 

Meanwhile Group Pushes Deeper into Bitcoin

Meanwhile Group made headlines earlier this year when it launched Meanwhile Insurance, a Bermuda-based company that accepts premiums and pays benefits exclusively in Bitcoin.

Although the service is currently limited to the United States customers, the company is in the process of expanding its services to citizens of other countries. 

Meanwhile Insurance offers whole life insurance policies, which provide a cash value in BTC in addition to a death benefit.

The recent move by Meanwhile Group aligns with the growing interest from institutional investors in Bitcoin and other cryptocurrencies. 

In 2021, New York Digital Investment Group secured $100 million in funding from major insurance providers with the aim of launching “Bitcoin-powered solutions for U.S.-based life insurance and annuity providers.” 

The entrance of established players into the Bitcoin space reflects the increasing acceptance and recognition of cryptocurrencies as viable investment assets.

Bitcoin Shows Resilience Despite Financial Markets Downturn

Bitcoin (BTC) has displayed resilience by surging to a more than 19-month high, even as global markets experienced a downturn. 

The cryptocurrency climbed 5.8% to reach $42,000 on Monday and maintained its position just below that level in morning Asian trading on Tuesday. 

In contrast, global shares and bonds have been struggling with losses since the beginning of the week. 

This divergence highlights the current low correlation between cryptocurrencies and other traditional macro assets, Sean Farrell, the head of digital-asset strategy at Fundstrat Global Advisors LLC, said.

Throughout 2023, Bitcoin’s correlations with stocks and gold have diminished as specific factors within the crypto market propelled a remarkable 152% surge in the value of the largest digital asset. 

One of the key drivers behind the gains is the anticipation that the United States will approve its first spot Bitcoin exchange-traded funds (ETFs), potentially expanding the demand for the token.

The 90-day correlation coefficient between Bitcoin and MSCI Inc.’s global shares index has declined from 0.60 to 0.18 since the start of the year.

A similar analysis of the token and spot gold reveals that the correlation figure has dropped close to zero from 0.36. 

A correlation coefficient of 1 indicates assets moving in tandem, while minus-1 signifies opposite movements.