Coinbase Launches Bitcoin Yield Fund Aiming for 4%-8% Returns
Coinbase Asset Management is launching a Bitcoin Yield Fund for non-US institutional investors on May 1. Key details include:
- The fund aims for a 4% to 8% annualized net return.
- Yield will initially be generated through basis trading, with future plans for lending and options strategies.
- Basis trading capitalizes on the spread between futures and spot markets.
- Recent data shows a decrease in short positions from $14.2 billion to $8.4 billion at the Chicago Mercantile Exchange.
- The strategy carries risks, such as the requirement to add margin during price surges.
- Coinbase's approach differs from BlockFi's previous yield platform, which relied on lending.