Coinbase Asset Management launches the Coinbase Bitcoin Yield Fund on May 1, aiming for an annualized net return of 4% to 8% in Bitcoin. The offering is exclusively for institutional investors outside the USA and aims to set new standards in conservative crypto investments.
The core of the investment strategy is an adapted basic trade, known in the crypto market as a cash-and-carry trade. Price differences between the spot market for Bitcoin and so-called perpetual swaps – futures with no expiration – are exploited. These differences are particularly pronounced during phases of rising Bitcoin prices, when speculative buyers are willing to pay premiums for open positions.
Investors deposit Bitcoin and receive fund shares; payouts are possible monthly. The goal is to make Bitcoin more competitive as an investment vehicle compared to cryptocurrencies like Ethereum or Solana, which generate native returns through staking.
Sebastian Bea, President of Coinbase Asset Management, emphasizes: "The next crypto cycle requires better, regulatory-backed products to attract institutional capital." The new fund aims to meet this need, with Coinbase focusing on a conservative risk structure and limited leverage.
To safeguard bitcoin, Coinbase itself as well as other "qualified custodians" are used. Despite the targeted minimum goal of 4% return, Coinbase warns: The actual results may "materially differ." However, the protection against operational and investment risks should be significantly more robust than existing competing products.
The fund receives seed capital from investors such as Aspen Digital, an Abu Dhabi-based private wealth platform. Aspen CEO Elliot Andrews praised Coinbase as the "most trusted partner in this asset class" and expressed confidence in the demand for Bitcoin yield products in the high-net-worth private client sector.
