Coinbase to Launch Bitcoin Yield Fund Targeting 4–8% Returns for Institutional Investors
New Product Aims to Bridge the Bitcoin Passive Income Gap for Institutions
Coinbase, the world’s third-largest cryptocurrency exchange, is set to launch the Coinbase Bitcoin Yield Fund (CBYF) on May 1, offering institutional investors a new way to earn passive income on Bitcoin holdings outside the United States.
The fund aims to deliver an annual net return between 4% and 8%, according to an April 28 announcement by Coinbase Asset Management.
“To address the growing institutional demand for bitcoin yield, Coinbase Asset Management is excited to introduce the Coinbase Bitcoin Yield Fund,” the company said in its statement.
Backed by multiple investors, including Aspen Digital — a digital asset manager based in Abu Dhabi and regulated by the Financial Services Regulatory Authority — the CBYF represents Coinbase’s latest step into specialized institutional offerings.
Filling a Key Void in Bitcoin Investment
Unlike assets such as Ether (ETH) and Solana (SOL), Bitcoin (BTC) does not naturally generate passive income through staking mechanisms. Coinbase says the CBYF aims to fill this gap by utilizing a cash-and-carry strategy, profiting from the spread between spot prices and derivatives.
The approach is designed to lower both investment and operational risks, challenges that have historically kept institutional allocators cautious about Bitcoin yield products.
“Bitcoin yield funds have emerged to address this limitation, but these funds generally require institutional allocators to take on significant investment and operational risk,” Coinbase noted in its blog post.
By targeting a risk-mitigated structure, Coinbase believes it can better meet the needs of institutional investors seeking exposure to Bitcoin’s growth potential without the volatility typically associated with crypto products.
Institutional Momentum Powers Bitcoin’s Rally
Coinbase’s move comes amid a sharp resurgence in Bitcoin’s price, driven largely by institutional demand. Bitcoin climbed more than 9% in the week leading up to April 28, buoyed by strong exchange-traded fund (ETF) inflows totaling over $3 billion, according to Farside Investors.
Bitcoin currently trades at $94,475, with analysts suggesting that retail investors could jump back into the market if Bitcoin crosses the psychologically critical $100,000 mark.
“Retail interest may surge if Bitcoin breaks $100,000, fueled by media hype and FOMO,” said Ryan Lee, Chief Analyst at Bitget Research, noting the importance of monitoring the $94,000–$95,000 resistance zone.
Meanwhile, Arthur Hayes, co-founder of BitMEX, recently called this period the “last chance” to buy Bitcoin below $100,000, predicting that upcoming U.S. Treasury buybacks could ignite the next major rally.
With institutions increasingly steering Bitcoin’s momentum, Coinbase’s Bitcoin Yield Fund could arrive at a pivotal moment for investors seeking smarter, lower-risk avenues into the world’s leading digital asset.
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