• 29 April 2025
• |
• 07:30

Institutional investors outside the U.S. will soon have a new way to earn Bitcoin returns without venturing into risky strategies, thanks to a new offering from Coinbase Asset Management.

The Coinbase Bitcoin Yield Fund (CBYF), set to launch on May 1, aims to deliver steady BTC-denominated yields through low-risk market strategies rather than speculative lending or staking practices.

Rather than promising unsustainable rewards like many crypto lending platforms of the past, CBYF will focus on cash-and-carry arbitrage—a method that capitalizes on price gaps between Bitcoin’s spot and futures markets. Coinbase emphasized that the fund will avoid exposure to volatile practices such as high-yield loans or option selling, using third-party custodians to further protect client assets. Annual net returns are projected to fall between 4% and 8%, paid directly in Bitcoin.

With Bitcoin lacking native yield mechanisms—unlike assets like Ethereum or Solana—investors have long faced a dilemma when trying to generate sustainable returns. CBYF was designed to fill this gap without adding excessive operational or investment risk.

Initial support for the fund has already materialized. Aspen Digital, a financial firm regulated in Abu Dhabi, has seeded early investments and will exclusively distribute CBYF across the United Arab Emirates and Asia. Aspen Digital’s CEO, Elliot Andrews, praised Coinbase’s credibility, noting that institutional players have been searching for compliant ways to earn reliable Bitcoin returns in a market increasingly wary of risk.

As demand grows for structured Bitcoin investment products tailored to private wealth and institutional portfolios, Coinbase’s move highlights the maturing relationship between traditional finance and the digital asset space.

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