Coinbase Asset Management has announced the launch of its new Bitcoin Yield Fund on May 1, 2025. This fund will be available to all institutional investors except USA citizens. Coinbase has targeted an annual return of 4% to 8% from this fund. In this, the spot and future price difference of Bitcoin will be used to generate yield.
What is Bitcoin Yield Fund, and how does it work?
Bitcoin Yield Fund is an investment method in which the investor can earn from Bitcoin without selling it. It is also called Yield Farming. This fund generates yield by using activities like trading and lending. Initially, this fund of Coinbase will work on basis trading. Coinbase has said that options like futures trading and lending can also be added in the future. This can increase the returns further.
Why did Coinbase target non-US investors?
Coinbase has launched this fund for non-US investors. Regulations related to crypto in the USA are very strict. Institutions like the SEC can declare such a Yield Fund as Unregistered Securities. Therefore, Coinbase has targeted investors outside the USA, where regulations are a little easier. The matter between the SEC and Coinbase on Crypto Regulation has gone to court, the decision came in favor of Coinbase in the legal battle against SEC.
Advantages of Coinbase Bitcoin Yield Fund
Coinbase has designed this fund with low risk and high security. Bitcoin will be kept in third-party custody to improve security. This fund gives investors the option of a monthly subscription so that investors can easily invest and withdraw from the fund. This better liquidity support makes the Coinbase Bitcoin Yield Fund special.
This type of option is already available to investors
Before Coinbase’s Bitcoin Yield Fund, other companies have also launched such products. For example, Core and Valour have launched Bitcoin Yield ETP in Europe, which gives a 5-6% annual return. Apart from this, companies like BlackRock and Franklin Templeton are also creating investment products based on crypto assets. All these options allow institutional investors to invest in Bitcoin safely.
Coinbase’s Bitcoin Yield Fund can be a good option for institutional investors who want to invest in Bitcoin with low risk. Its low-risk strategy, target return of 4% to 8%, and secure structure make it an attractive investment option. As new processes are added to it, its possibilities may increase further.
If you are looking to earn returns from Bitcoin, this fund from Coinbase could be a good opportunity, especially if you want to keep the risk to a minimum.