Cantor Fitzgerald Teams Up with Tether, SoftBank, and Bitfinex for $3B Bitcoin Investment Venture

John Palmer — Wed, 23 Apr 2025 08:56:41 +0000

Cantor Fitzgerald has announced a major move into the digital asset space by partnering with Tether, SoftBank, and Bitfinex to launch 21 Capital, a $3 billion Bitcoin-backed acquisition firm.

The venture marks a bold step in the brokerage’s growing involvement in cryptocurrency investments and aims to position it among the key players in the industry.

New Bitcoin acquisition vehicle backed by leading firms

21 Capital functions as a digital acquisition company by holding Bitcoin worth $3 billion which key figures in cryptocurrency marketplace contribute. The new firm receives a total of $3.5 billion from Tether and SoftBank and Bitfinex through Bitcoin donations of $1.5 billion and each capital supply of $900 million and $600 million. The new firm plans to enhance its stock value through issuing bonds worth $350 million and securing $200 million in private equity.

The share issuance at $10 per unit through 21 Capital will take place while valuing each Bitcoin at the rate of $85,000 during conversion. The new venture operates through Cantor Equity Partner which raised $200 million funds when it launched in 2025. The formal declaration regarding this transaction is estimated to materialize within upcoming weeks yet final conditions might alter during current negotiations.

Cantor expands role in digital finance

Brandon Lutnick, chairman of Cantor Fitzgerald and son of U.S. Commerce Secretary Howard Lutnick, is leading this new effort. The venture reflects the firm’s strategy to expand into the virtual asset market and mirrors the investment path taken by MicroStrategy. Cantor’s approach has helped it accumulate over 530,000 BTC worth $36.4 billion, though it has recently faced a 20% decline in its share value from its previous peak.

Since 2021 Tether has built a prolonged business alliance with Cantor Fitzgerald through which the firm oversees $134 billion worth of funds while holding a 5% equity stake in Tether. A strategic partnership between Tether enabled the company to secure $775 million from the firm to buy Rumble as well as establish a $2 billion Bitcoin-backed loan facility.

Leadership transition and broader vision

U.S. Commerce Secretary became the latest appointment for Howard Lutnick after his four-decade long tenure as leader of Cantor Fitzgerald. Brandon Lutnick acts as chairman of the brokerage whereas Kyle Lutnick serves as vice chairman alongside him. The firm has introduced two more SPACs under their current leadership concentrating on crypto and fintech investments. Cantor is expanding its digital infrastructure through partnerships with Anchorage Digital and Copper. The firm continues to align its strategy with the rising demand for Bitcoin investment tools amid market optimism driven by President Trump’s re-election and policy promises to support crypto adoption.

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Cantor Fitzgerald expresses optimism over SEC’s future approval of Bitcoin Spot ETFs

Damilola Lawrence — Sun, 29 Oct 2023 20:32:12 +0000

Cantor Fitzgerald, a major player in financial services, has indicated growing confidence in the likelihood of the Securities and Exchange Commission (SEC) approving applications for Bitcoin Spot ETFs, according to a Bloomberg report. Unlike past rejections, analysts at the firm, Josh Siegler and Will Carlson, have stated that the SEC seems more inclined to approve the newly filed applications. One key point they emphasized is BlackRock Inc.’s application, which has incorporated a surveillance-sharing agreement to mitigate market manipulation. Additionally, Grayscale Investments LLC recently won a court battle against the SEC, overturning a previous rejection of its proposal to convert its trust into an ETF.

Newly-proposed surveillance measures could sway SEC decision

One critical component that appears to be swaying the SEC’s stance is the inclusion of “comprehensive surveillance-sharing agreements” within applications. Siegler and Carlson from Cantor Fitzgerald stated that such an agreement with a regulated market of significant size would likely meet the SEC’s criteria for approval. Following in the footsteps of BlackRock, other applicants have also embedded such surveillance provisions within their proposals.

Moreover, the analysts have cited the recent judgment by a federal court in favor of Grayscale Investments. Judge Neomi Rao termed the SEC’s decision to reject Grayscale’s proposal as “arbitrary and capricious.” The court highlighted the SEC’s inconsistency, pointing out the unexplained rationale for approving Bitcoin futures ETFs while rejecting Grayscale’s spot offering. This, despite both types of products sharing similarities across several regulatory considerations.

The effect of these developments on Bitcoin’s valuation is already evident. According to Siegler and Carlson, the recent surge in Bitcoin prices, climbing to more than $35,000, the highest level in nearly 18 months, can be attributed in part to these regulatory shifts. They noted that a Bitcoin Spot ETF approval would serve as a significant short-term catalyst for Bitcoin’s price.

However, it’s not just about the immediate implications for the cryptocurrency market. The analysts argue that approval of a Spot Bitcoin ETF in the US would contribute substantially to Bitcoin’s long-term adoption and legitimacy. It would essentially simplify the investment process, eliminating the need for investors to find a Bitcoin custodian or invest in more complex futures products.