Daniel Walker
Coinbase Asset Management is set to launch a new institutional fund designed to deliver steady bitcoin-denominated returns for non-U.S. investors. Scheduled to go live on May 1, the fund, known as the Coinbase Bitcoin Yield Fund (CBYF), aims to expand Bitcoinโs utility beyond traditional “buy and hold” strategies, according to a press release issued Monday.
While cryptocurrencies like Ethereum and Solana offer native staking rewards, Bitcoin has long lacked built-in yield opportunities. Coinbase emphasized that most efforts to earn yield on Bitcoin involve considerable investment and operational risks, exposing participants to potential pitfalls.
The CBYF seeks to overcome this challenge by implementing a conservative cash-and-carry arbitrage strategy. This approach takes advantage of price discrepancies between Bitcoinโs spot and derivatives markets to generate low-risk profits. Importantly, the fund will steer clear of riskier practices, such as offering high-interest Bitcoin loans or systematic call option selling. Additionally, Coinbase noted that third-party custodians will be utilized to minimize counterparty risks.
The fund is targeting annual net returns between 4% and 8%, with payouts made directly in Bitcoin.
Strong Early Backing from Global Players
Several prominent investors have already committed capital to the CBYF. Notably, Aspen Digital, a company regulated in Abu Dhabi, is among the fundโs early supporters. Furthermore, Aspen Digital has been appointed as the exclusive distribution partner for the CBYF across the United Arab Emirates and Asia.
Elliot Andrews, CEO of Aspen Digital, highlighted the demand among long-term Bitcoin holders, stating:
“Long-term holders have been searching for ways to generate bitcoin-denominated returns on their assets in a sustainable and compliant way.“
Why Coinbase’s Bitcoin Yield Fund Matters
According to Andrews, Coinbaseโs reputation as “the most trusted counterparty in the crypto asset class,” combined with the growing interest in Bitcoin yield strategies, positions the CBYF to make a major impact in the private wealth market.
With institutional demand for Bitcoin-related products steadily increasing, the Coinbase Bitcoin Yield Fund could signal a broader shift toward yield-focused Bitcoin investing, particularly among international private wealth clients.
