Coinbase Asset Management has announced the launch of its new Bitcoin Yield Fund (CBYF), a product aimed at institutional investors seeking long-term exposure to Bitcoin (BTC) with the added benefit of annual yields between 4% and 8%. The fund is set to launch officially on Thursday, May 1, 2025, and is available exclusively to non-U.S. investors.
Unlike traditional Bitcoin yield products, which often require investors to take on significant risks through lending or derivatives trading, CBYF employs a conservative strategy. The fund avoids riskier methods such as lending BTC or selling options. Instead, it integrates third-party custodians for trading and asset storage to reduce investment and operational risks for institutions entering the crypto market.
Subscriptions and redemptions for the fund will be processed monthly, requiring a five-day notice period. The fund has a projected capacity of $1 billion, and only qualified custodians will manage the assets.
Aspen Digital, a digital asset manager based in the United Arab Emirates, is one of the fund’s initial investors. It will also serve as the exclusive distribution partner for the fund across the UAE and Asia, helping Coinbase expand its reach in these key markets.
The launch of CBYF comes at a time of surging institutional interest in Bitcoin. Data from SoSoValue shows that Bitcoin spot exchange-traded funds have attracted $38.05 billion in net inflows since their introduction, with corporate entities like Strategy continuing aggressive accumulation of BTC holdings.
Meanwhile, other major players such as Cantor Fitzgerald, SoftBank, Bitfinex, and Tether have created 21 Capital, a $3.6 billion Bitcoin investment initiative. This move further highlights the growing appetite for institutional Bitcoin products.
With the U.S. Federal Reserve easing restrictions on crypto activities for banks and bullish long-term forecasts, such as ARK Invest’s prediction of Bitcoin reaching $2.4 million by 2030-the institutional momentum behind Bitcoin investment products is expected to accelerate.
If you want to read more news articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
“Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
