Cantor Fitzgerald Teams With Tether, SoftBank for $3B BTC Fund

Cantor Fitzgerald Launches $3B Bitcoin Fund With Major Crypto Backing

In a move that may disrupt the crypto space, Cantor Fitzgerald is said to be joining forces with Tether, SoftBank, and Bitfinex to start a $3 billion Bitcoin fund. The fund will be used to purchase huge quantities of Bitcoin, similar to what MicroStrategy has been doing over the last few years. 

A New $3 Billion Bitcoin Venture

In a report published by the Financial Times, Cantor Fitzgerald will introduce a Bitcoin investment fund via a special-purpose acquisition company (SPAC). The fund will be operated through a new entity named 21 Capital and will be overseen by Brandon Lutnick, the son of Cantor Chairman Howard Lutnick, and also the U.S. Commerce Secretary.

The entire worth of the BTC fund will be $3 billion, and it will be supported by top financial and crypto companies. 

Below is how the funding will be divided:

• Tether will give $1.5 billion in Bitcoin

• SoftBank is providing $900 million

• Bitfinex will invest $600 million

This will be among the biggest private crypto buying efforts so far.

Big Names Backing Bitcoin

Each of the companies involved has shown a strong interest in BTC before. Tether, the world’s biggest stablecoin issuer, already works closely with Cantor to manage its reserves. It has also shown interest in investing in digital currency financing businesses.

Japanese technology giant SoftBank is also no stranger to investing in this particular currency. One of its subsidiaries, Metaplanet, has been purchasing BTC in bulk in recent times. Crypto exchange Bitfinex, a firm closely associated with Tether, is also a big player stepping into the purchasing scene.

Together, these companies are showing strong support for Cantor’s crypto ambitions. The idea of Cantor is to create a corporate-level strategy to buy and hold large amounts of currency, just like MicroStrategy.

Is This Another MicroStrategy?

Many experts are calling this new plan a “MicroStrategy clone.” Michael Salyor’s MicroStrategy is known for buying huge amounts of the crypto as part of its corporate strategy. Just recently, the company added 6,556 BTC to its balance sheet.

Ryan Watkins, co-founder of Syncracy Capital, said this trend could grow fast. “One is an outlier, two is a trend. Dozens start to look like bubble behavior,” he warned. He also added that if more firms start doing this, it could lead to risky market conditions.

Still, not everyone agrees. Crypto lawyer John Deaton sees this move as part of a bigger plan. He says the fund might be linked to President Trump’s executive order that asked U.S. agencies to create a “Strategic Bitcoin Reserve.” This order encourages the Commerce and Treasury departments to buy BTC in a way that doesn’t hurt the national budget.

Market Reaction and Future Outlook

Following the news, Bitcoin’s price jumped to $93,000, reaching its highest point in two weeks. Though this price rise appears promising, there are warnings from some analysts that the rally may prove temporary. There are increasing concerns that coin may drop back to $80,000 if the bubble bursts.

For now, the industry is paying attention closely. Cantor's new fund may be a harbinger of more large investors joining the BTC market. Only time will tell if it results in long-term growth or dangerous speculation.