A new Bitcoin investment product targeting institutional investors is being launched by Coinbase Asset Management.
According to the company’s official announcement on April 28, the Coinbase Bitcoin Yield Fund is designed to provide long-term exposure to Bitcoin while offering 4–8% net annual returns in BTC. A conservative strategy is used by the fund, focusing on reducing both investment and operational risks, which are two major concerns for institutions entering the crypto space.
Unlike traditional assets or staked tokens like Ethereum or Solana, yield is not naturally generated by Bitcoin. Higher risks, such as lending Bitcoin or selling options, are typically required by most Bitcoin yield products. However, it was stated by Coinbase that these riskier methods will be avoided by CBYF. Instead, third-party custody integrations will be used for trading, which helps to minimize counterparty exposure.
The official launch of the fund is set for May 1, 2025, and it is currently available only to non-U.S. investors. Monthly subscriptions and redemptions will be handled, with a five-day notice period required. An estimated capacity of $1 billion is projected for the strategy, and asset storage will be managed by qualified custodians.
Among the fund’s initial investors is Aspen Digital, a UAE-based digital asset manager, and the firm will be acting as its exclusive distribution partner across the UAE and Asia.
The launch coincides with increasing institutional interest in Bitcoin. According to SoSoValue data, a cumulative total net inflow of $38.05 billion has been registered by Bitcoin spot exchange-traded funds since their launch, as of April 28. Aggressive accumulation has been maintained by Strategy and other corporate holders. More than 553,000 BTC is now held by Strategy, after 15,355 BTC was recently acquired for $1.4 billion.
Meanwhile, increasing interest in purchasing Bitcoin is being expressed by more institutions. Plans to launch 21 Capital, a $3.6 billion Bitcoin investment venture, have been announced by Cantor Fitzgerald, SoftBank, Bitfinex, and Tether. Debt and equity will be leveraged by the business to build up its Bitcoin reserves, similar to the approach taken by Strategy.
With crypto restrictions for banks being loosened by the Federal Reserve and bullish projections like ARK Invest’s $2.4 million Bitcoin price target by 2030, it is expected that institutional momentum for Bitcoin products will continue to grow.
