Coinbase unveils Bitcoin yield fund targeting 4-8% returns for international investors
Coinbase launches Bitcoin Yield Fund aiming for 4–8% annual BTC returns
In a strategic move to broaden Bitcoin’s investment appeal, Coinbase Asset Management has announced the launch of the "Coinbase Bitcoin Yield Fund" (CBYF), set to debut on May 1.
The fund targets non-U.S. institutional investors and promises sustainable returns between 4% and 8% annually, paid directly in Bitcoin.
A new approach to bitcoin yield
Unlike assets such as Ethereum and Solana, Bitcoin traditionally lacks native yield mechanisms. Previous attempts to generate returns have often involved high-risk strategies like lending or call options. Coinbase aims to change that by employing a conservative cash-and-carry arbitrage approach, profiting from price discrepancies between Bitcoin’s spot and futures markets. The fund specifically avoids high-interest loans and other risk-laden strategies, while utilizing third-party custodians to minimize counterparty risks.
This initiative taps into the roughly $1 trillion global Bitcoin liquidity pool, offering long-term holders a compliant and sustainable opportunity to earn Bitcoin-denominated returns.
Global expansion and initial partners
Several investors have already seeded the CBYF, including Aspen Digital, an Abu Dhabi-regulated platform, which will act as the fund's exclusive distribution partner in the United Arab Emirates and Asia. Elliot Andrews, CEO of Aspen Digital, highlighted the strong demand from private wealth markets for Bitcoin yield products, noting Coinbase’s reputation as a trusted counterparty.
As crypto adoption accelerates globally, products like CBYF could set new standards for conservative yet rewarding Bitcoin investment strategies, potentially encouraging broader institutional participation.
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