Cantor Fitzgerald is joining forces with SoftBank, Tether, and Bitfinex to launch a Bitcoin-backed investment vehicle worth $3 billion.
The new fund, called 21 Capital, comes as Bitcoin trades near historic highs and institutional appetite for crypto exposure surges under the pro-crypto Trump administration.
The structure is designed to mirror MicroStrategy’s high-profile approach of accumulating Bitcoin through corporate vehicles, a model that helped transform it into a crypto-centric company.
According to the Financial Times, the fund will be backed by direct Bitcoin contributions: Tether with $1.5 billion, SoftBank with $900 million, and Bitfinex with $600 million.
These contributions will be converted into shares of 21 Capital at $10 each, pegging the internal valuation of Bitcoin at $85,000 per coin.
The goal is to create a publicly tradeable vehicle that allows investors to gain Bitcoin exposure without owning the underlying asset directly.
Fundraising through bonds and equity
21 Capital will be operated by Cantor Equity Partners, a special purpose acquisition company that earlier this year raised $200 million.
Along with the Bitcoin contributions, the fund will issue a $350 million convertible bond and raise another $200 million via a private equity placement.
These moves aim to expand the fund’s Bitcoin reserves and liquidity, providing it with flexibility to adjust holdings as the crypto market evolves.
The initiative is being led by Brandon Lutnick, who became chairman of Cantor Fitzgerald after his father Howard Lutnick entered the Trump administration as commerce secretary.
Under Brandon’s leadership, Cantor has ramped up its crypto advisory services, including Tether’s $775 million investment in video platform Rumble.
Crypto optimism fuels new strategy
Bitcoin’s price trajectory has played a key role in the timing of this move.
The cryptocurrency surged past $108,000 following Trump’s November victory and has since pulled back to around $92,000.
Despite this volatility, market sentiment remains strong, especially among institutions looking to replicate early successes seen by firms like MicroStrategy.
That company’s strategy—leveraging both debt and equity to accumulate Bitcoin—now serves as a template. It helped MicroStrategy’s market capitalisation climb to over $9 billion.
21 Capital appears to be taking a similar route, positioning itself as a Bitcoin-focused fund that taps into public markets and private funding sources.
Regulatory risks remain
Despite the enthusiasm, there are still risks tied to the entities involved.
Tether and Bitfinex, which are owned by the same parent company, settled regulatory investigations in the US in 2021.
Although the Trump administration has promised a lighter touch on crypto oversight, such ventures could still attract attention from lawmakers and watchdogs.
The final structure and launch timeline for 21 Capital remain in flux.
Insiders suggest the deal could be announced within weeks, but caution that terms may change or the venture could fall apart altogether.
Still, the move underscores how traditional financial players are working with crypto-native firms to enter the digital asset space at scale.
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