Coinbase Asset Management has announced the launch of a new institutional fund offering Bitcoin yield, aiming for a conservative return of 4-8% per year. The Coinbase Bitcoin Yield Fund (CBYF) is set to launch on May 1 and will invest in Bitcoin while seeking this consistent yield. The fund’s strategy lowers expected investment and operational risks compared to traditional approaches or other Bitcoin yield funds, which often require substantial capital and risk management.
Coinbase Asset Management emphasizes its commitment to addressing institutional demand for Bitcoin yields. This is achieved by using third-party custody integrations to trade, mitigating counterparty risk without the need to move assets out of storage. The fund’s launch follows a surge in institutional interest in Bitcoin, as evidenced by significant inflows into U.S. spot Bitcoin ETFs last week. These include the fifth-largest weekly inflow on record for Bitcoin, representing around $2.9 billion, highlighting renewed engagement from institutions.