Coinbase Planning to Introduce a Bitcoin Yield Fund for Institutional
The post Coinbase Planning to Introduce a Bitcoin Yield Fund for Institutional appeared on BitcoinEthereumNews.com.
Key Notes Coinbase will launch a Bitcoin Yield Fund for institutional investors outside the US on May 1. The fund will offer an annual net return of 4% to 8%. Assets will remain in cold storage with third-party custody integrations to minimize risk. Coinbase, one of the largest crypto exchanges, is preparing to launch a Bitcoin Yield Fund on May 1, offering institutional investors outside the United States exposure to BTC. According to Coinbase, the Bitcoin Yield Fund is expected to deliver an annual net return of 4% to 8% on investors’ Bitcoin BTC $94 676 24h volatility: 0.7% Market cap: $1.88 T Vol. 24h: $27.28 B holdings. The fund has been approved by the Financial Services Regulatory Authority and is backed by institutional investors, including Aspen Digital. What It Entails The Coinbase Bitcoin Yield Fund (CBYF) was created to give institutional investors access to Bitcoin yield while maintaining a conservative annual return. The fund is considered necessary because Bitcoin differs from altcoins and traditional financial assets like Treasury bills, which naturally incorporate yields into their structure. In the blog post, Coinbase explained that the fund aims to reduce the risks institutional investors may face when interacting with Bitcoin. The announcement also stated that the fund will use qualified custodians and aims for an estimated strategy capacity of $1 billion in assets under management (AUM). Coinbase Asset Management added that, to minimize risks, assets will not be moved from cold storage. Instead, the fund will use “third-party custody integrations to trade,” thereby reducing “counterparty risk.” As part of its conservative approach, the fund will also avoid engaging in high-risk Bitcoin loans and systematic call selling. Why We Need a Bitcoin Yield Fund A Bitcoin yield fund like this has been long overdue. While Ethereum ETH $1 789 24h volatility: 0.6%…
Filed under: News - @ April 28, 2025 3:26 pm