KEY TAKEAWAYS
- Coinbase Asset Management launches the Coinbase Bitcoin Yield Fund, targeting a 4-8% annual net return in bitcoin.
- The fund aims to meet institutional demand for bitcoin yield with a conservative investment strategy, minimizing risks through third-party custody integrations.
- Supported by investors like Aspen Digital, the fund will be available for international investors, with a $1 billion AUM capacity.
Coinbase Asset Management has announced the launch of the Coinbase Bitcoin Yield Fund (CBYF), a long-bitcoin fund targeting a 4-8% net return in bitcoin annually. This initiative aims to meet the increasing institutional demand for bitcoin yield, offering a conservative investment strategy.
The CBYF is designed to address the limitations of bitcoin, which unlike traditional or staked digital assets, does not inherently generate yield. The fund seeks to lower investment and operational risks, aligning with the risk appetite of institutional investors. By utilizing third-party custody integrations for trading, Coinbase Asset Management aims to reduce counter-party risk, avoiding riskier high-interest bitcoin loans and systematic call selling.
The fund is supported by multiple investors, including Aspen Digital, a digital asset manager based in Abu Dhabi. Aspen Digital will also serve as an exclusive wealth-distribution partner across the UAE and Asia. The official launch of CBYF is set for May 1, 2025.
Investment Details and Strategy
The Coinbase Bitcoin Yield Fund will be open for monthly subscriptions and redemptions, requiring a five-business-day notice. The strategy has an estimated capacity of $1 billion in assets under management (AUM) and is currently available for international investors outside the United States.
Coinbase Asset Management, a dedicated digital asset manager, aims to facilitate institutional engagement with digital assets by blending traditional investment experience with digital acumen. The fund’s targeted net return is based on forward-looking views and assumptions regarding market conditions and digital asset volatility. However, there is no guarantee that the CBYF will achieve its target returns.
For more information, the official announcement can be found here.
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