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Coinbase will launch a Bitcoin yield fund for institutional investors outside the US on May 1st. The fund offers an annual net profit of 4% to 8% through third-party custody integration to minimize risk.
One of the largest crypto exchanges, Coinbase is preparing to launch a Bitcoin yield fund on May 1, and is exposed to BTC by institutional investors outside the US.
According to Coinbase, Bitcoin yield funds are expected to provide 4% to 8% annual net profits on investors’ Bitcoin
BTC
$93 733
24-hour volatility:
0.2%
Market Cap:
$1.86 t
Vol. 24H:
$27.60 b
Holdings. The fund is approved by financial services regulators and is supported by institutional investors, including Aspen Digital.
What it comes with
The Coinbase Bitcoin Ildo Fund (CBYF) was created to provide institutional investors with access to Bitcoin yields while maintaining conservative annual revenue. This fund is considered necessary because Bitcoin is different from traditional financial assets such as altcoins and Treasury bills.
In a blog post, Coinbase explained that the fund aims to reduce the risks faced by institutional investors when interacting with Bitcoin.
The announcement also said the fund is using eligible custodians and is aiming for an estimated strategic capacity of $1 billion in managed assets (AUM).
Coinbase Asset Management added that assets will not move out of cold storage to minimize risk. Instead, the fund uses “to trade third party custody integrations” to reduce “counterparty risk.”
As part of a conservative approach, the fund will avoid involvement in high-risk Bitcoin loans and systematic call sales.
Why you need a Bitcoin Yield Fund?
Such Bitcoin yield funds have been postponed for a long time. During Ethereum
ETH
$1 761
24-hour volatility:
1.9%
Market Cap:
$212.52 b
Vol. 24H:
$12.65 b
You can also bet many other coins to win attractive returns. Bitcoin holders have little or no reliable way to generate passive income from their assets. This move is great news for long-term Bitcoin holders who want to earn a steady return without selling BTC.
Coinbase pointed to the wave of institutional adoption at Crypto as the main reason for launching the fund.
Supporting this trend, market data shows that digital asset investment products attracted $3.4 billion inflows last week, the third largest weekly inflow since mid-December 2024, and the highest inflow in the week.
Bitcoin led the fees, pulling in that total of $3.18 billion, according to Coinshares. As a result, Bitcoin-centric investment products currently manage $132 billion in assets, reaching levels not seen since late February.
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Disclaimer: Coinspeaker is committed to providing fair and transparent reporting. This article is intended to provide accurate and timely information, but should not be considered financial or investment advice. Market conditions can change quickly, so we recommend that you review your information yourself and consult with an expert before making a decision based on this content.
Rose is a crypto content writer with a strong background in finance and technology. She simplifies complex blockchain and cryptocurrency topics, providing insightful articles and market analysis, allowing readers to navigate the evolving crypto landscape.
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