Coinbase has launched a game-changing Bitcoin Yield Fund that offers strong returns with minimized risk, revolutionizes institutional crypto investing, and sets a new gold standard for secure yield.
Coinbase Unveils Bitcoin Yield Fund, Steering Clear of Risky Loans and Call Options
On April 28, crypto exchange Coinbase (Nasdaq: COIN) announced the launch of the Coinbase Bitcoin Yield Fund (CBYF), a new initiative targeting institutional investors seeking bitcoin yield with reduced risk. Coinbase Asset Management (Coinbase AM or CBAM) developed the CBYF to generate steady returns for clients who subscribe and redeem directly in BTC.
This fund is a conservative strategy that seeks a 4-8% net return in bitcoin per year, over a market cycle, with investors subscribing and redeeming in bitcoin.
The company explained:
The CBYF, set to officially open on May 1, will accept monthly subscriptions and redemptions with a five-business-day notice period. Analysts forecast that the strategy will accommodate up to $1 billion in assets under management. Initially, qualified custodians will offer it exclusively to non-U.S. investors.
Multiple investors, including Aspen Digital—an FSRA-regulated digital asset manager based in Abu Dhabi, UAE—have already seeded the CBYF fund, the company stated. Aspen Digital will also be serving as the exclusive wealth distribution partner across the UAE and Asia.
Positioned as a gateway for institutions into the crypto sector, Coinbase AM aims to combine traditional finance standards with expertise in digital assets. The U.S. has registered Coinbase Asset Management as an investment advisor (RIA). Securities and Exchange Commission (SEC), as a commodity pool operator (CPO) and commodity trading advisor (CTA) with the Commodity Futures Trading Commission (CFTC), and is a member of the National Futures Association (NFA).
The institutional focus of the fund was highlighted by Coinbase AM, who stated:
Coinbase AM designed CBYF to lower expected investment and operational risks, which we believe align with institutional investor risk appetite.
CBAM emphasized that CBYF stands apart from typical bitcoin yield strategies, which often carry substantial investment or operational risks. Instead of adopting riskier practices, CBYF’s structure directly addresses security concerns. The company explained, ‘Rather than moving assets out of storage, Coinbase AM uses third-party custody integrations to conduct trades, significantly reducing counter-party risk. CBAM emphasized that CBYF stands apart from typical bitcoin yield strategies, which often involve substantial investment or operational risks. Additionally, the company’s investment strategy avoids high-interest bitcoin loans and systematic call selling, as these practices generally carry greater risk. Instead of adopting practices that increase risk, CBYF’s structure directly addresses security concerns.
