In a tweet, Coinbase Asset Management revealed it is launching a new fund that aims to deliver a regular yield on a customer’s Bitcoin holdings.
The Coinbase Bitcoin Yield Fund, which is set to launch on May 1, represents a conservative strategy that seeks a 4-8% net return in Bitcoin per year, over a market cycle, with investors subscribing and redeeming in Bitcoin.
We’re proud to introduce the Coinbase Bitcoin Yield Fund (CBYF), an institutional solution built to invest in bitcoin while seeking a conservative bitcoin yield.
Seeking a 4-8% net return in bitcoin, we designed CBYF to lower expected investment and operational risks, which we…
— Coinbase Asset Management (@CoinbaseAM) April 28, 2025
In an official blog post, Coinbase stated the fund was launched in response to the growing institutional demand for Bitcoin yield.
Bitcoin, unlike traditional assets or staked digital assets such as Ethereum and Solana, does not generate yield. Bitcoin yield funds have emerged to address this limitation, but they often require institutional allocators to take on significant investment and operational risks.
The Coinbase fund aims to address this issue, lowering expected investment and operational risks. Coinbase Asset Management would use third-party custody integrations to trade, which it believes significantly reduces counterparty risk, rather than moving assets out of storage.
Bitcoin sees renewed institutional engagement
According to Glassnode, last week, U.S. spot Bitcoin ETFs received a net inflow of 31,323 BTC, which is equivalent to around $2.9 billion. In Bitcoin terms, it was the fifth-largest weekly inflow on record. In dollars, it ranks even higher, as the third-largest inflow, behind Nov. 18, 2024 ($3.33 billion), and Dec. 2, 2024 ($2.91 billion).
This highlights renewed institutional engagement with Bitcoin, even at elevated price levels. The same positivity is also seen for Ethereum (ETH), the second-largest cryptocurrency by market capitalization.
According to Glassnode, Ethereum ETFs recorded their first positive net inflow after eight consecutive weeks of outflows. The inflow was relatively modest — about 40,000 ETH — but marks a potential shift in sentiment around ETH exposure.
