Coinbase is launching a new fund, the Bitcoin Yield Fund (CBYF), designed to provide investors with steady returns in Bitcoin without relying on speculative lending or staking practices. Unlike some crypto platforms that promise unsustainable rewards, CBYF will use cash-and-carry arbitrage—a strategy capitalizing on price differences between Bitcoin’s spot and futures markets—to generate income. To minimize risk, the fund will avoid high-yield loans and options trading, utilizing third-party custodians to safeguard client assets. Expected annual net returns range from 4% to 8%, paid directly in Bitcoin. This strategy aims to address a persistent challenge for investors: generating sustainable returns without resorting to risky strategies, especially given Bitcoin’s lack of built-in yield mechanisms like Ethereum or Solana. Early institutional support for CBYF is already securing a foothold, with Aspen Digital, a regulated financial firm in Abu Dhabi, committing early investments and securing exclusive distribution rights within the UAE and Asia. This move underscores the growing convergence between traditional finance and the digital asset space as demand for structured Bitcoin investment products tailored to private and institutional investors rises.