Coinbase Launches Innovative Bitcoin Fund for Institutional Investors
Coinbase Asset Management is set to introduce a new Bitcoin investment product aimed at institutional investors. The coinbase Bitcoin Yield Fund, announced on April 28, offers long-term exposure to Bitcoin (BTC) with an estimated 4–8% net annual returns in BTC.
This fund employs a cautious strategy to reduce investment and operational risks, addressing key concerns for institutions entering the crypto market. Unlike customary assets, Bitcoin doesn’t naturally generate yield. Most Bitcoin yield products involve higher risks, such as lending or selling options. However, the CBYF will steer clear of these risky methods. It will use third-party custody integrations for trading, helping to minimize counterparty exposure.
The fund will launch on May 1, 2025, and is initially available only to non-U.S. investors. Subscriptions and redemptions will happen monthly, with a five-day notice period.The fund has an estimated $1 billion capacity, with qualified custodians managing asset storage.
Aspen Digital, a UAE-based digital asset manager, is among the initial investors and will distribute the fund across the UAE and Asia. The launch comes as institutional interest in Bitcoin grows. Bitcoin spot exchange-traded funds have seen a cumulative net inflow of $38.05 billion as their launch.
More institutions are showing interest in Bitcoin. cantor Fitzgerald,SoftBank,Bitfinex,and Tether plan to launch 21 Capital,a $3.6 billion Bitcoin investment venture. With the Federal Reserve easing crypto restrictions and bullish projections like ARK Invest’s $2.4 million Bitcoin price target by 2030, the momentum for Bitcoin products is expected to continue.
