A new Bitcoin investment product targeting institutional investors is being launched by Coinbase Asset Management.
In its official April 28 announcement, Coinbase stated that the Bitcoin Yield Fund aims to offer long-term exposure to Bitcoin while delivering 4–8% net annual returns in BTC. The fund follows a conservative strategy that reduces both investment and operational risks—two major concerns for institutions entering the crypto space.
Unlike traditional assets or staked tokens like Ethereum or Solana, Bitcoin does not naturally generate yield. Most Bitcoin yield products typically require higher-risk strategies, such as lending or selling options. However, Coinbase has stated that CBYF will avoid these riskier methods. Instead, it will use third-party custody integrations for trading to minimize counterparty exposure.
Coinbase will officially launch the fund on May 1, 2025, making it currently accessible only to non-U.S. investors. Investors can subscribe and redeem monthly, provided they give a five-day notice. The strategy aims to accommodate up to $1 billion in assets, with qualified custodians securely managing them.
Global Partnerships and Institutional Demand Accelerate
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, Bitcoin spot exchange-traded funds have registered a cumulative total net inflow of $38.05 billion since their launch, as of April 28. Strategy and other corporate holders continue to aggressively accumulate Bitcoin. Strategy now holds over 553,000 BTC after recently acquiring 15,355 BTC for $1.4 billion.
Meanwhile, more institutions are expressing increasing interest in purchasing Bitcoin. Cantor Fitzgerald, SoftBank, Bitfinex, and Tether have announced plans to launch 21 Capital, a $3.6 billion Bitcoin investment venture. The business will leverage debt and equity to build its Bitcoin reserves, following a strategy similar to that used by Strategy.
As the Federal Reserve loosens crypto restrictions for banks and ARK Invest projects a $2.4 million Bitcoin price by 2030, institutional momentum for Bitcoin products continues to gain strength.
