- Coinbase launches a Bitcoin Yield Fund (CBYF) aiming for 4-8% annual net returns in BTC, targeting institutional investors.
- CBYF prioritizes lower risk through third-party custody and avoids high-interest loans and systematic call selling.
- Backed by investors like Aspen Digital, CBYF launches May 1, 2025, for international investors, with a $1B capacity.
Coinbase has launched a proprietary Bitcoin Yield Fund (CBYF) that seeks a 4-8% net return in BTC per year, over a market cycle, with investors subscribing and redeeming in the asset.
As per the announcement post, Bitcoin yield funds come in handy against traditional assets or staked digital assets such as Ether and Solana that do not generate yield. Additionally, a lack of institutional allocators creates a hurdle for investment and operational purposes. In such a scenario, Coinbase’s BTC fund aims to lower expected investment and operational risks, aligning with institutional investor risk appetite.
CBYF also uses third-party custody integrations for trading, significantly reducing counterparty risk. Additionally, its investment strategy avoids riskier high-interest bitcoin loans and systematic call selling.
The fund received major financial backing from several high-profile investors, like Aspen Digital, an FSRA-regulated digital asset manager based in Abu Dhabi, UAE. CBYF officially launches on May 1, 2025.
Additional CBYF details:
- Monthly fund open for subscriptions/redemptions, five business days’ notice.
- $1 billion AUM estimated strategy capacity.
- Qualified custodians.
- Currently available for international investors (non-US).
Coinbase Targets Institutions & Baby Boomers with New Bitcoin Yield Fund
As institutional crypto adoption grows, Coinbase Asset Management provides solutions for institutional investors to engage with digital assets by blending traditional investment experience with digital acumen.
Proponents say that such a fund will appeal to Baby Boomers, a demographic that traditionally harbors conservative investments, and appealing to this generation would help unlock a significant amount of capital into the crypto market due to their vast wealth.
Research suggests Baby Boomers favor dividend paying stocks, bonds, CDs, and real estate for steady income Now, with Coinbase launching the Coinbase Bitcoin Yield Fund that seeks 4–8% net returns in BTC What will make the perfect narrative to get Baby Boomers to buy Bitcoin, and why is this a big deal? They are the wealthiest living generation in the history of humanity. It’s time to RAISE THE TARGETS
In related news, SoftBank and Tether are launching a new Bitcoin fund with $3 billion in seed capital. Tether and Bitfinex will hold majority ownership, while SoftBank will have a minority stake.