To address the growing institutional demand for bitcoin yield, Coinbase Asset Management is excited to introduce the Coinbase Bitcoin Yield Fund (CBYF). This fund is a conservative strategy that seeks a 4-8% net return in bitcoin per year, over a market cycle, with investors subscribing and redeeming in bitcoin*.
Bitcoin, unlike traditional assets or staked digital assets such as ether and solana, does not generate yield. 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 AM designed CBYF to lower expected investment and operational risks, which we believe align with institutional investor risk appetite.
Rather than move assets out of storage, Coinbase AM uses third-party custody integrations to trade, which we believe significantly reduces counter-party risk. Additionally, our investment strategy avoids riskier high-interest bitcoin loans and systematic call selling.
The fund is seeded by multiple investors, including Aspen Digital, an FSRA-regulated digital asset manager based in Abu Dhabi, UAE. Aspen Digital is also initially serving as an exclusive wealth-distribution partner across the UAE and Asia. CBYF officially launches on May 1, 2025.
Additional CBYF details:
- Monthly fund open for subscriptions/redemptions, five business days notice.
- $1B AUM estimated strategy capacity.
- Qualified custodians.
- Currently available for international investors (non-US).
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.
Source: Coinbase Asset Management
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