Coinbase Asset Management is launching a new Bitcoin investment product targeting institutional investors.
According to the company’s Apr. 28 official announcement, the Coinbase Bitcoin Yield Fund is designed to offer long-term exposure to Bitcoin (BTC) while providing a 4–8% net annual returns in BTC. The fund uses a conservative strategy focused on lowering both investment and operational risks, two major concerns for institutions entering the crypto space.
Unlike traditional assets or staked tokens like Ethereum (ETH) or Solana (SOL), Bitcoin does not naturally generate yield. Most Bitcoin yield products require investors to take on higher risks, such as lending Bitcoin or selling options. However, Coinbase said CBYF will avoid these riskier methods. Instead, it will use third-party custody integrations for trading, helping to minimize counterparty exposure.
The fund will officially launch on May 1, 2025, and is currently available only for non-U.S. investors. Subscriptions and redemptions will occur monthly, with a five-day notice period. The strategy has an estimated $1 billion capacity, and qualified custodians will handle asset storage.
Aspen Digital, a UAE-based digital asset manager, is among the fund’s initial investors and will act as its exclusive distribution partner across the UAE and Asia.
The launch coincides with growing institutional interest in Bitcoin. According to SoSoValue data, since their launch, Bitcoin spot exchange-traded funds have registered a cumulative total net inflow of $38.05 billion as of Apr. 28. Strategy and other corporate holders have also been keeping up their aggressive accumulation. Strategy now has more than 553,000 BTC after recently acquiring 15,355 BTC for $1.4 billion.
Meanwhile, more and more institutions are expressing interest in purchasing Bitcoin. Cantor Fitzgerald, SoftBank, Bitfinex, and Tether have announced plans to launch 21 Capital, a $3.6 billion Bitcoin investment venture. The business will leverage debt and equity to build up its Bitcoin reserves, just like Strategy did.
With the Federal Reserve loosening crypto restrictions for banks and bullish projections like ARK Invest’s $2.4 million Bitcoin price target by 2030, institutional momentum for Bitcoin products is expected to keep growing.
