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 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.
How the fund works
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.
Also Read: Circle Moves Record $4.4B USDC to Coinbase via HyperEVM
The fund went onchain in 2026
In March 2026, when Coinbase Asset Management partnered with Apex Group to launch a tokenized share class of the Bitcoin Yield Fund on Base, Coinbase’s Ethereum layer-2 network. The move brought the fund itself closer to the blockchain infrastructure on which Coinbase has been building its broader institutional strategy.
Tokenizing the fund’s shares could make it easier to integrate institutional investment products with onchain financial infrastructure.
Instead of keeping the investment vehicle entirely within traditional financial rails, tokenized fund shares can potentially be transferred and integrated into blockchain-based applications, subject to applicable restrictions and compliance requirements. The development also illustrates how Coinbase is increasingly connecting its asset-management business with Base and its wider push into onchain finance.
Enjoyed this? Bookmark DeFi Planet, explore related topics, and follow us on Twitter, LinkedIn, Facebook, Instagram, Threads, and CoinMarketCap Community for seamless access to high-quality industry insights
Take control of your crypto portfolio with DEFI PLANET PRO, DeFi Planet’s suite of analytics tools.
