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Coinbase is set to launch its new Bitcoin Yield Fund on May 1 offering institutional investors outside the US an opportunity to earn between 4% and 8% annual returns on their Bitcoin holdings. The fund uses a cash-and-carry strategy to generate yield by taking advantage of differences in Bitcoin’s spot and derivatives prices. Aspen Digital a regulated digital asset manager based in Abu Dhabi supports the initiative signaling growing institutional trust in cryptocurrency.
This fund addresses a significant gap for Bitcoin investors who unlike holders of Ethereum and Solana cannot generate passive income through staking. Coinbase designed the fund to reduce investment risks typically seen in Bitcoin yield products making crypto investments safer and more appealing for large financial institutions. This move could drive even more institutional money into the crypto market boosting overall adoption.
Bitcoin prices recently surged to $94,000 thanks mainly to institutional buying and increased inflows into crypto ETFs totaling over $3 billion. Continued institutional interest could push Bitcoin beyond $100,000 further increasing mainstream attention and encouraging retail investors to re-enter the market.
