Cantor Creates $3-Bn Bitcoin Fund
Fitzgerald, SoftBank and Tether partner on largest-ever institutional Bitcoin investment vehicle
Brandon Lutnick, chairman of Cantor Fitzgerald and son of US Commerce Secretary Howard Lutnick, is orchestrating a $3 billion Bitcoin investment vehicle, according to a report by Financial Times.
Cantor Equity Partners, which raised $200 million in January, will serve as the Special Purpose Acquisition Vehicle (SPAC). The company plans to absorb $3 billion in Bitcoin contributions from its partners — SoftBank, Tether, and Bitfinex.
Together, they will form 21 Capital – a publicly listed firm mirroring Strategy’s (formerly MicroStrategy) Bitcoin-centric treasury approach.
Strategy's market cap has soared to more than $90 billion since initiating its Bitcoin strategy, inspiring firms like Metaplanet, MARA Holdings, and GameStop to follow similar paths.
21 Capital would represent the first vehicle created specifically to deploy this strategy from inception.
Bitcoin contributions would convert to SPAC shares at a rate valuing Bitcoin at $85,000 per coin — below the cryptocurrency's current market price of approximately $92,000, the FT report revealed.
The venture represents a strategic marriage between traditional finance and cryptocurrency markets. Cantor Fitzgerald brings institutional credibility and market access, while Tether and Bitfinex contribute specialised cryptocurrency trading and custody expertise.
The SPAC structure provides a familiar investment framework for traditional investors while allowing significant Bitcoin exposure without direct custody requirements.
Market analysts note the deal could remove a significant amount of Bitcoin from circulation, potentially supporting prices. However, the involvement of Tether and Bitfinex may draw regulatory scrutiny, as both companies settled significant investigations with US regulators in 2021.
The report cautioned the deal remains subject to change and final details are still being negotiated.
The deal is expected to be announced in coming weeks, pending final agreements.