Brandon Lutnick, chairman of brokerage firm Cantor Fitzgerald and son of U.S. Commerce Secretary Howard Lutnick, is launching a $3 billion Bitcoin investment vehicle backed by crypto heavyweights Tether, SoftBank, and Bitfinex.
The move places him at the heart of a growing institutional push into crypto assets — and could mark one of the most high-profile Bitcoin investment plays yet.
A MicroStrategy-Style Bet on Bitcoin
The Bitcoin fund named 21 Capital is being formed through Cantor Equity Partners, a special purpose acquisition company (SPAC) founded by Brandon Lutnick, and aims to mirror the playbook used by MicroStrategy, which has become a market phenomenon by using equity and debt issuance to build a multibillion-dollar bitcoin reserve.
Sponsored
Like MicroStrategy, 21 Capital aims to turn Bitcoin into a core corporate asset and convert billions in Bitcoin into equity shares.
Such a structure would allow 21 Capital to become one of the largest publicly listed bitcoin funds, backed by some of the most influential names in crypto finance.
Bitcoin Fund Backed by Tether, SoftBank, and Bitfinex
While the deal is anticipated to be announced in the coming weeks, according to sources cited by the Financial Times, Cantor Equity Partners raised $200 million in January and plans to use this capital to launch a Bitcoin fund, called 21 Capital.
It will also receive $3 billion in bitcoin from key cryptocurrency investors. According to sources, Tether will contribute $1.5 billion, SoftBank will invest $900 million, and Bitfinex will add $600 million.
Both Tether and Bitfinex are owned by the same parent company and share overlapping leadership.
To further expand its bitcoin holdings, 21 Capital also plans to raise $350 million through a convertible bond and another $200 million via private equity.
All contributions to the fund will be converted into equity in 21 Capital at a fixed price of $10 per share, which values Bitcoin at $85,000 per coin.
Political and Financial Power Collide
Brandon Lutnick, now chairman of brokerage powerhouse Cantor Fitzgerald, assumed the role after his father, Howard Lutnick, stepped down to serve as President Trump’s top trade official.
Howard Lutnick, however, is no stranger to the world of crypto finance. As former CEO of Cantor Fitzgerald, he oversaw the firm’s investment in Tether, acquiring a 5% stake valued at around $600 million. Cantor Fitzgerald also acted as custodian for Tether’s U.S. Treasury reserves.
Now serving as Commerce Secretary in the Trump administration, Howard Lutnick remains a key figure in shaping pro-crypto economic policy. A longtime Trump ally and major campaign donor, he played a leading role in the 2024 transition and was confirmed by the Senate earlier this year.
On The Flipside
- Tether has faced scrutiny from the U.S. over reserve transparency, with investigations by the CFTC and the New York Attorney General.
- U.S. officials have tied Tether to money laundering, terror financing, and sanctions evasion, notably in Russia and the Middle East.
- Lutnick’s roles in government and business raise concerns about conflicts of interest and regulatory bias that may favor Tether.
Why This Matters
The launch of 21 Capital underscores the growing intersection between crypto and traditional finance, as well as the potential for blurred lines between public office and private financial interests.
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