Coinbase, the world’s third-largest cryptocurrency exchange by trading volume, announced the launch of the Coinbase Bitcoin Yield Fund (CBYF), set to go live on May 1. The fund is designed to offer institutional investors outside the United States exposure to Bitcoin with an expected annual net return between 4% and 8%, according to an April 28 blog post from Coinbase.
“To address the growing institutional demand for bitcoin yield, Coinbase Asset Management is excited to introduce the Coinbase Bitcoin Yield Fund (CBYF),” the company wrote.
Backed by Global Institutional Players
The CBYF is supported by several investors, including Aspen Digital, a digital asset management firm based in Abu Dhabi and regulated by the Financial Services Regulatory Authority (FSRA).
By leveraging a cash-and-carry strategy — profiting from the spread between spot Bitcoin prices and futures — the fund aims to generate consistent returns for institutional participants.
Filling the Bitcoin Yield Gap
Unlike cryptocurrencies such as Ether and Solana, Bitcoin holders traditionally lack the ability to earn passive income through staking mechanisms. Coinbase highlighted this gap, noting that while Bitcoin yield funds have emerged in the past, they often required institutions to take on “significant investment and operational risk.”
The Coinbase Bitcoin Yield Fund seeks to reduce those risks, offering a more accessible and lower-risk product that aligns better with the risk appetite of large institutional investors.
Coinbase cited the growing institutional adoption of crypto assets as a key driver behind the fund’s creation. This trend may also be contributing to Bitcoin’s recent price strength, with the digital asset staging a notable recovery over the past week.
