XBTO, a Crypto investment company and liquidity provider, cooperated with Arab Bank Switzerland to provide a Bitcoin yield product with bank management clients, which is part of a growing appetite at institutions for BTC’s harvest products.
According to XBTO, the product will apply the “diamond” approach, a ownership approach used in the company’s bitcoin (Btc) yield fund. The approach to fund policies involves the sale of BTC options to earn premiums, while looking for accumulation in market dips. Controlled in bermuda, the product is reported The annual return of almost 5% with relatively low volatility.
“The maturation of institutional digital assets requires sophisticated solutions beyond simple exposure,” said Javier Rodriguez-Alarcon, chief investment official and head of digital asset management at XBTO.
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“We have seen growing demand from our wealth management clients for ways to produce yield in their Bitcoin handles within a properly managed risk framework,” said Romain Braud, head of digital assets at the Arab Bank Switzerland.
Bitcoin’s produce production has long been considered out of reach, as most returns rely on price appreciation only. But newer mechanisms, such as derivatives and staking-based models, now offer alternative revenue sources for holders.
CEO of Solv Protocol Ryan Chow recently told to Token2049 Conference Interest from Institutions to Bitcoin-Yield Products will get up big In recent years, allowing institutions to produce yield while not selling their BTC.
Related: Here’s what Bitcoin did while the US added to its $ 37t debt
Dangers and other BTC yield products
While Bitcoin’s yield products may seem like a tool to produce a stream of income, they also combine risks, According to In OneSafe. These risks include non -heavy loss, lack of regulatory clarity, market volatility, and problems within intelligent contracts.
Some companies also estimated in bitcoin’s harvest products Hilbert Capitalby a solution to its bitcoin yield, Purpose Investmentincludes its purpose of harvesting bitcoin ETF, and Neos by Bitcoin High Income ETF. Also launched by Coinbase Coinbase bitcoin funding funds In April 2025.
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