Coinbase to Launch Bitcoin Yield Fund for Institutional Investors on May 1
Coinbase plans to launch a Bitcoin Yield Fund (CBYF) on May 1, targeting institutional investors outside the U.S. The fund aims to provide an annual net return of 4% to 8% on Bitcoin holdings and has received approval from the Financial Services Regulatory Authority.
Key Details
- The fund is designed to offer institutional access to Bitcoin yield with a conservative return approach.
- It will utilize qualified custodians and target $1 billion in assets under management.
- Assets will remain in cold storage, using third-party custody integrations to minimize counterparty risk.
- The fund will avoid high-risk strategies like Bitcoin loans and systematic call selling.
- This offering addresses the lack of passive income options for Bitcoin holders compared to other cryptocurrencies.
Institutional adoption in crypto is increasing, with digital asset investment products seeing $3.4 billion in inflows last week, marking the highest levels since mid-December 2024. Bitcoin attracted $3.18 billion of this total, bringing its investment product AUM to $132 billion.