Coinbase recently launched a feature that could change how investors view Bitcoin. Bitcoin yield is now real for institutions outside the U.S.
Coinbase Asset Management has launched a new fund that will allow non-U.S. institutional investors to earn between 4% and 8% annualized net returns, paid directly in Bitcoin.
The Coinbase Bitcoin Yield Fund is designed to provide big investors with a way to generate passive income from Bitcoin, which typically doesn’t accrue interest or yield like staking coins on Ethereum or Solana.
The fund will use a combination of cash-and-carry arbitrage, lending, and options trading strategies to generate its returns. Cash-and-carry arbitrage is a strategy that exploits price differences between the spot market and the futures market. Lending will generate interest income, and options trading will be used to generate income from market volatility.
Coinbase clarified that they won’t engage in risky activities like unsecured Bitcoin lending or market-making, and all assets will be held with third-party custodians to mitigate counterparty risk.
The Coinbase Bitcoin Yield Fund is available to non-U.S. institutional investors only. The minimum investment amount is $1 million.
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