Wall Street and crypto giants converge in a new investment vehicle backed by billions in BTC as institutional adoption accelerates.
Cantor Fitzgerald is reportedly joining forces with Tether, SoftBank, and Bitfinex to launch a new Bitcoin-focused investment firm dubbed 21 Capital, seeded with $3 billion in BTC. The structure is inspired by MicroStrategy’s successful model of converting Bitcoin holdings into public equity.
As reported by the Financial Times, Tether will contribute $1.5 billion, SoftBank $900 million, and Bitfinex $600 million to the initiative. This entity will be structured to issue shares at $10, with the internal value of Bitcoin pegged at $85,000 per coin.
Brandon Lutnick Drives Cantor’s Crypto Expansion
Leading the project is Brandon Lutnick, who assumed the role of Cantor Fitzgerald chairman after his father, Howard Lutnick, became U.S. Commerce Secretary under Donald Trump.
Brandon has pushed Cantor deeper into digital assets, including advising Tether on its $775 million investment in Rumble. The 21 Capital vehicle will be formed via Cantor Equity Partners, a SPAC that previously raised $200 million.
Additional funding will include a $350 million convertible bond and $200 million from private equity placement to further expand BTC reserves.
Bitcoin Boom Fuels Institutional Gold Rush
The timing reflects increased institutional demand for Bitcoin, with prices recently topping $108,000 following Trump’s reelection before correcting to $92,000. Trump’s crypto-friendly administration has significantly reduced the regulatory pressure that hampered institutional adoption in the past.
This fund would follow MicroStrategy’s playbook, offering equity exposure to Bitcoin without needing to hold BTC directly — a model that’s gaining momentum in public markets.
Legacy Meets Crypto in a New Era of Bitcoin Finance
While Tether and Bitfinex’s past regulatory challenges remain a consideration, Trump’s pro-crypto policies could provide the cover needed for firms like Cantor to bridge the gap between TradFi and DeFi.If successful, 21 Capital may become a blueprint for Wall Street’s next generation of crypto-native funds, and a catalyst for further institutional participation.
