Cantor Fitzgerald Makes a Major Move into the Cryptocurrency Space with the Creation of a $300M Bitcoin Acquisition Vehicle

Cantor Fitzgerald is making a major move into the cryptocurrency space with the creation of a $3 billion Bitcoin acquisition vehicle.

Cantor Fitzgerald is making a major move into the cryptocurrency space with the creation of a $3 billion Bitcoin acquisition vehicle, according to a Financial Times report.

The new venture, called 21 Capital, will see contributions from Tether, SoftBank, and Bitfinex to provide the initial capital for the venture. Tether is set to seed the vehicle with $1.5 billion worth of Bitcoin, while Japanese investment giant SoftBank will contribute $900 million, and cryptocurrency exchange Bitfinex will add $600 million.

The venture will be led by Brandon Lutnick, son of US Commerce Secretary Howard Lutnick, who is also Chairman of Cantor Fitzgerald. The elder Lutnick has previously shown interest in cryptocurrencies, particularly Bitcoin.

21 Capital will operate through Cantor Equity Partners, a special-purpose acquisition company (SPAC) that raised $200 million earlier this year. The partnership aims to create a publicly listed alternative to MicroStrategy, which has transformed itself into a Bitcoin-focused company.

The report indicates that the partners working with Cantor are scheduled to convert their Bitcoin investments into 21 Capital shares, priced at $10 per share. This conversion would value Bitcoin at $85,000 per coin.

The creation of 21 Capital comes as cryptocurrency acceptance is increasing in the political sphere. US President Trump's decision to launch a Strategic Bitcoin Reserve has been a key factor in this trend.

Trump's executive order, which directs Commerce Secretary Howard Lutnick and Treasury Secretary Scott Bessent to acquire Bitcoin in budget-neutral ways, provides the political backdrop for Cantor's Bitcoin venture.

Howard Lutnick, who served at Cantor Fitzgerald for over four decades, was appointed as Commerce Secretary by President Trump in November.

Under Lutnick's leadership, Cantor has already made several moves into the cryptocurrency space. Last November, Cantor Fitzgerald announced plans for a separate $2 billion Bitcoin lending program in partnership with Tether.

By March this year, Cantor announced it would be utilizing crypto platforms maintained by Anchorage Digital and Copper.

Bitcoin price reacted positively to the news of Cantor's new venture, rising to a two-week high of $93,000. The cryptocurrency had previously peaked at around $106,000 earlier this year following Trump's election victory before falling to $79,000 and then recovering.

The deal is expected to be announced in the coming weeks, but the Financial Times notes that it may not materialize and the figures are still subject to change.

The three sources briefed on the matter, who were not named, add that the venture will be structured in a way that allows for efficient tax reporting and regulatory compliance.

If successful, 21 Capital would represent one of the largest institutional moves into Bitcoin to date. The $3 billion venture would further legitimize cryptocurrency as an asset class worthy of major institutional investment.

The partnership also highlights the increasing interest in cryptocurrencies from both private and public sectors as the digital asset class continues to grow in value and adoption.

This news post may contain statements, relevant to future events and/or Cantor Fitzgerald's future economic performance, that are "forward-looking" within the meaning of the Private Securities Litigation Reform Act of 1995.

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