Coinbase Launches Coinbase Bitcoin Yield Fund (CBYF) Targeting 4-8% Annual Profit from Bitcoin, Focusing on Institutional Investors and Minimizing Risks.
The cryptocurrency exchange Coinbase (Nasdaq: COIN) has announced the launch of the Coinbase Bitcoin Yield Fund (CBYF) – a new Bitcoin yield fund targeting institutional investors seeking stable returns with tightly controlled risk levels.
According to the announcement on April 28, the fund developed by Coinbase Asset Management (CBAM) aims for a net yield of 4-8% in BTC annually, with a notable feature of allowing direct registration and capital withdrawal in Bitcoin.
"This is a cautious investment strategy, targeting a net yield of 4-8% in BTC annually, throughout a market cycle, with both investment and capital withdrawal performed in Bitcoin," Coinbase stated.
Structure and Key Features
CBYF will officially open for registration from May 1, operating under a mechanism that allows monthly registration and capital withdrawal with a five-working-day advance notice period. The fund is designed to manage total assets up to $1 billion and is initially only for non-US investors through licensed custodial entities.
The fund has received initial capital from multiple investors, particularly Aspen Digital – a digital asset management company based in Abu Dhabi, UAE, licensed by FSRA. Aspen Digital will also serve as the exclusive asset distribution partner in the UAE and Asia region.
Coinbase Asset Management, the fund's manager, is currently an SEC-registered investment advisor, a registered commodity fund operator and commodity trading advisor, and a member of the National Futures Association (NFA).
The important difference of CBYF compared to traditional Bitcoin yield strategies lies in its security and risk mitigation approach. Instead of applying high-profit measures with significant risks, CBYF is designed to directly address security concerns.
"Instead of moving assets out of storage, Coinbase AM uses integrated third-party custody solutions for transactions, which we believe significantly reduces counterparty risks," Coinbase explained. "Additionally, our investment strategy avoids high-risk Bitcoin loans and does not systematically apply option selling."
This initiative marks an important step in providing crypto investment tools that align with risk management standards of traditional institutions.
