Coinbase, the third-largest largest cryptocurrency exchange by volume, launches the Coinbase Bitcoin Yield Fund on May 1, which aims to offer Bitcoin (Btc) exposure for institution investors outside the US.
Fund targets an annual net return of 4% to 8% in Bitcoin’s holdings, According to In a post on April 28 Coinbase’s blog.
“To address the growing institutional demand for Bitcoin’s yield, Coinbase Asset Management is excited to introduce Coinbase Bitcoin Yield Fund (CBYF),” the company wrote.
The fund is supported by many investors, including Aspen digital, a digital asset manager based in Abu Dhabi and controlled by the financial service regulation.
Related: Michael Saylor indicates the purchase of Bitcoin as aggressive by whales
The yield develops through a cash-and-carry approach, by the difference between the prices of bitcoin prices and derivatives.
Not like ether (Eth) and Solana (Sol), Bitcoin holders cannot generate passive income by staking – a space the fund aims to fill, according to the announcement:
“Bitcoin funds have emerged to meet this limit, but these funds generally require institution allocators to take significant risk for investment and operation.”
The new fund aims to reduce the investment and operational risks commonly associated with Bitcoin yield products, which Coinbase says is better aligned with the risk of institutional investors.
Related: Stacks Asia expands Bitcoin initiatives with Abu Dhabi Partnership
