Blockstream is showing signs of movement. The company, known for its Bitcoin infrastructure, has announced that it will officially enter the asset management business. Earlier this year, they launched a new division called Blockstream Asset Management and plan to introduce two institutional investment funds in the first quarter.

The first is the Blockstream Income Fund. The core of this fund is Bitcoin-backed lending. It involves lending Bitcoin to startups and companies holding digital assets on the Blockstream network and earning dollar-denominated returns. Given that the focus is on loans ranging from $100k to $5 million, mid-sized Bitcoin-based projects are likely to be the main targets.

The second is the Alpha Fund, which is somewhat different. It aims for portfolio growth and allows investors to access infrastructure-based revenue streams, such as operating Lightning Network nodes. Since it is actively managed, the fund charges higher fees.

What’s interesting is that Blockstream is not just sticking to Bitcoin technology development but is also expanding into asset management. This indicates that as the Bitcoin ecosystem matures, demand for such financial services is emerging. It also aligns with the trend of increasing institutional investors’ access to Bitcoin.