A game-changing Bitcoin Yield Fund has been unleashed by Coinbase, offering strong returns with minimized risk, revolutionizing institutional crypto investing and setting a new gold standard for secure yield.
On April 28, the launch of the Coinbase Bitcoin Yield Fund (CBYF) was announced by crypto exchange Coinbase (Nasdaq: COIN), a new initiative aimed at institutional investors seeking bitcoin yield with mitigated risk. Developed by Coinbase Asset Management (Coinbase AM or CBAM), the CBYF is designed to generate steady returns for clients subscribing and redeeming directly in BTC. The company explained:
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 CBYF, set to officially open on May 1, will accept monthly subscriptions and redemptions with a five-business-day notice period. It is forecast that the strategy will accommodate up to $1 billion in assets under management and will initially be made available only to non-U.S. investors through qualified custodians.
Early support for the CBYF has already been received. “The fund is seeded by multiple investors, including Aspen Digital, an FSRA-regulated digital asset manager based in Abu Dhabi, UAE,” was shared by the company. 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. Coinbase Asset Management is registered as an investment advisor (RIA) with the U.S. 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.
It was emphasized by CBAM that CBYF differs from typical bitcoin yield strategies, which often involve substantial investment or operational risks. Instead of adopting practices that increase risk, CBYF’s structure directly addresses security concerns. The company described: “Rather than moving assets out of storage, third-party custody integrations are used by Coinbase AM to trade, which is believed to significantly reduce counter-party risk. Additionally, riskier high-interest bitcoin loans and systematic call selling are avoided in our investment strategy.”
