Coinbase Unveils Bitcoin Yield Fund Amid Growing Institutional Interest

Coinbase Asset Management has announced the upcoming launch of its Bitcoin Yield Fund, which aims to deliver regular returns on Bitcoin holdings. According to a tweet from Coinbase, the fund will begin operations on May 1 and target an annual net return between 4% and 8%, payable in Bitcoin.

The yield generation mechanism found in Ethereum and Solana digital assets does not operate within Bitcoin. The fund became necessary for Coinbase because institutions needed low-risk Bitcoin yield solutions.

Also Read: Cardano Price Soars After Golden Cross — Can ADA Hit $1 Sooner Than Expected?

Fund Structure Designed to Minimize Risk

Additionally, Coinbase stated that the Bitcoin Yield Fund would lower both investment and operational risks often associated with Bitcoin yield strategies. The firm intends to execute trades through third-party custody integrations, significantly reducing counterparty risks by storing assets securely.

This structure offers a more conservative and secure option for institutions seeking to earn a return on Bitcoin without exposing themselves to significant trading risks. Coinbase emphasized that the launch directly addresses the gap in the market for safer Bitcoin yield products.

Institutional Bitcoin and Ethereum Inflows See Positive Momentum

Besides the fund announcement, recent data points to strong institutional engagement with Bitcoin. Glassnode reported a net inflow of 31,323 BTC into U.S. spot Bitcoin ETFs last week, equivalent to around $2.9 billion. This figure is the fifth-largest weekly inflow on record in Bitcoin terms and the third-largest by dollar value.

Ethereum experienced renewed market interest during two successive weeks when capital flowed out. The data from Glassnode indicates that Ethereum ETFs accepted about 40,000 ETH in holdings during the previous week. This small but meaningful shift in investor attitude towards Ethereum investment products indicates positive market trends.

The Bitcoin Yield Fund launch by Coinbase demonstrates an increasing interest from institutions to invest in Bitcoin by securing stability and yield returns.

Also Read: Shiba Inu Approaches Critical Technical Breakout as Golden Cross Formation Nears

The post Coinbase Unveils Bitcoin Yield Fund Amid Growing Institutional Interest appeared first on 36Crypto.