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Coinbase Bitcoin Yield Fund (CBYF)
Spot and Derivatives Arbitrage Strategies Generate Returns
Bitcoin’s Upward Momentum Driven by Institutional Capital Inflows
Coinbase, the world’s third-largest cryptocurrency exchange, announced the launch of the Coinbase Bitcoin Yield Fund (CBYF) on May 1, targeted at institutional investors outside the United States. According to an official blog post released by Coinbase on April 28, the fund aims to deliver an annual net return of 4% to 8% on Bitcoin holdings. Coinbase stated: “In response to the growing institutional demand for Bitcoin yield, the Coinbase asset management team is pleased to introduce the Coinbase Bitcoin Yield Fund (CBYF).” The fund has garnered support from several investors, including Aspen Digital, a digital asset management firm based in Abu Dhabi and regulated by the Financial Services Regulatory Authority (FSRA).
Spot and Derivatives Arbitrage Strategies Generate Returns
The fund will primarily generate returns through “spot and futures arbitrage strategies,” which exploit the price differences between Bitcoin’s spot prices and derivative prices. Coinbase pointed out that, unlike assets such as Ethereum (ETH) or Solana (SOL), which can generate passive income through staking, Bitcoin holders currently do not have a similar mechanism, which is a market gap the fund aims to fill. Coinbase noted that, although there are Bitcoin yield funds available in the market, they typically require institutional investors to bear significant investment and operational risks. In contrast, CBYF aims to reduce associated investment and operational risks, making the product design more in line with the risk tolerance of institutional investors.
Bitcoin’s Upward Momentum Driven by Institutional Capital Inflows
Coinbase indicated that the motivation behind the launch of CBYF stems from the rapid increase in institutional acceptance of cryptocurrencies, which is also one of the reasons for Bitcoin’s sharp rebound over the past week. According to data from Sosovalue, as of April 28, Bitcoin had risen by over 9% in the past week, with inflows into spot Bitcoin ETFs exceeding $3 billion, marking the second-highest single-week inflow on record.
Arthur Hayes, co-founder of BitMEX, predicted on April 21 that with the U.S. Treasury initiating a buyback program, Bitcoin is about to enter a new phase of upward movement, stating that the current moment may be the last chance to purchase Bitcoin at a price below $100,000.