Coinbase is set to launch its Bitcoin Yield Fund on May 1, aimed at offering institutional investors a way to earn passive income on their Bitcoin holdings with anticipated annual returns of 4% to 8%. The fund targets institutional investors outside the US and seeks to address the rising demand for Bitcoin yield products. According to Coinbase’s announcement, the fund will use a cash-and-carry strategy to generate yield, capitalizing on the disparity between spot Bitcoin prices and derivatives. Bitcoin holders currently lack a staking option to generate passive income, a gap that this fund intends to fill. By mitigating the investment and operational risks often associated with Bitcoin yield products, Coinbase aims to align the fund more closely with institutional investors’ risk appetites. The fund is supported by several investors, including Aspen Digital, a regulated digital asset manager based in Abu Dhabi. This launch reflects the growing interest and need for accessible Bitcoin yield solutions among institutional players in the crypto space.

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