- Coinbase has launched a Bitcoin Yield Fund offering 4–8% annual returns paid in BTC, using a low-risk cash-and-carry arbitrage strategy.
- Available only to non-U.S. institutional investors, the fund is distributed exclusively by Aspen Digital across Asia and the UAE.
Coinbase is expanding its institutional offerings with the launch of the Coinbase Bitcoin Yield Fund (CBYF), a new investment vehicle aiming to deliver sustainable 4–8% annualized returns—paid directly in Bitcoin. Slated to go live on May 1, the fund is exclusively available to non-U.S. institutional investors, marking a strategic push into global crypto yield markets.
Unlike native staking mechanisms available in Proof-of-Stake (PoS) networks like Ethereum or Solana, Bitcoin’s Proof-of-Work (PoW) model lacks built-in yield. To fill that gap, Coinbase is turning to cash-and-carry arbitrage, a conservative trading strategy that exploits price differences between spot and derivatives markets. The company emphasizes that this method avoids riskier approaches like unsecured Bitcoin lending or options selling, offering a safer path to yield generation.
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Coinbase says it will leverage third-party custodians to manage assets securely and reduce counterparty risks, reinforcing its commitment to compliance and security—key concerns for institutions.
Distribution of the fund will be handled exclusively by Aspen Digital, a UAE-regulated wealth management platform. Aspen has already seeded the fund and will lead its rollout across Asia and the United Arab Emirates. “Coinbase is the most trusted counterparty in the asset class,” said Elliot Andrews, CEO of Aspen Digital, adding that the fund meets growing demand for Bitcoin-denominated returns in a compliant framework.
The move comes amid a surge in interest in Bitcoin DeFi, where total value locked (TVL) jumped from $3.7 billion to $5.9 billion in under two weeks, according to DeFiLlama. However, while most Bitcoin DeFi products cater to retail investors, CBYF squarely targets corporate and institutional capital.
As market turbulence drives demand for non-correlated assets, Coinbase’s entry into the Bitcoin yield space could signal a new phase of institutional adoption, positioning the company as more than just a trading platform—now, also a yield-generation powerhouse for global investors.
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