Institutional demand for high-yield Bitcoin funds is growing following the successful launch of BTC ETFs.

Blockchain development firm Blockstream has launched two institutional investment funds that provide direct exposure to the company’s Bitcoin ecosystem, giving investors the ability to earn yields on Bitcoin-backed loans and other revenue streams.

In a Jan. 23 announcement, Blockstream debuted its new asset management business, unveiling the Blockstream Income Fund and the Blockstream Alpha Fund, which are set to launch in the first quarter of this year. 

The Blockchain Income Fund is designed to pay US dollar-denominated yield by lending against Bitcoin 

 collateral from across Blockstream’s network of Bitcoin-native startups and businesses with digital asset treasuries. The fund is focused on loans between $100,000 and $5 million. 

The Alpha Fund focuses on portfolio growth, providing investors with exposure to “infrastructure-based revenue streams like Lightning Network node operations.” It’s considered an actively managed fund, which typically carries higher fees. 

Blockstream joins companies like Grayscale, Pantera and Galaxy Digital in offering crypto-focused investment funds with various levels of exposure to the industry. As Cointelegraph recently reported, digital asset exchange Crypto.com has also launched an institutional investment platform.