Coinbase Asset Management will officially launch its Bitcoin Yield Fund on May 1, 2025, providing non-U.S. institutional investors with a regulated and secure path to earn a yield on their Bitcoin holdings.
As first reported by Bloomberg, this new fund leverages a conservative investment strategy known as basis trading. This method involves capturing the price difference between Bitcoin’s spot market price and its perpetual futures price. During periods of market growth, the price gap between these two instruments tends to widen, presenting an opportunity to generate consistent returns.
Yield Expectations and Risk Strategy
The fund aims to provide investors with an annualised net return between 4% and 8%, with earnings paid directly in Bitcoin. However, Coinbase cautioned that returns could fluctuate based on market conditions.
While basis trading is generally considered a low-risk strategy, the company acknowledged that poor leverage management has led to losses in the past. To minimize risk, Coinbase emphasized that the Bitcoin Yield Fund will use only modest leverage and store digital assets with Coinbase and other qualified custodians.
Institutional Appeal and Compliance Focus
Sebastian Bea, President of Coinbase Asset Management, described the product as a well-suited vehicle for institutions seeking compliant exposure to digital assets.
“We believe the Bitcoin Yield Fund is particularly well suited to the task, given its conservative and compliant investment strategy,” said Bea.
The offering has already secured early interest from Aspen Digital, a wealth management firm based in Abu Dhabi. This shows that institutions outside the U.S. are eager to access yield-generating Bitcoin investment tools with a strong regulatory footing.
A Rising Trend: Institutional Bitcoin Yield Products
Coinbase’s move comes amid an industry-wide push to launch institutional-grade BTC yield offerings. Similar initiatives have emerged over the past year, indicating a growing demand for low-risk, high-compliance Bitcoin products.
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Earlier this year, The Core Foundation, in collaboration with Maple Finance, BitGo, Copper, and Hex Trust, introduced lstBTC—a tokenized product backed by Bitcoin held in custody. This liquid token offers a way to earn yield while preserving BTC exposure.
In another example, Securitise Credit partnered with QCP Capital to structure a BTC basis trade using BlackRock’s BUIDL fund as collateral. This hybrid strategy reportedly delivered returns exceeding 20% annually, showing how traditional finance is increasingly integrating with crypto-native strategies.
Final Thoughts
With the Bitcoin Yield Fund, Coinbase is strategically positioning itself to serve the institutional segment of the crypto market. By focusing on a compliant, low-leverage, and custody-backed approach, the exchange aims to set a new benchmark for yield-generating Bitcoin investments.
As May 1 approaches, all eyes will be on how the market receives this offering—and whether it sparks a broader trend among institutional investors seeking structured BTC returns.
