America’s largest cryptocurrency exchange, Coinbase, will launch the Coinbase Bitcoin Yield Fund (CBYF) on May 1, targeting institutional investors outside the United States.
The fund seeks to deliver a 4% to 8% annual net return on Bitcoin holdings, generated through a cash-and-carry strategy, exploiting the price differences between spot and derivatives markets.
Backed by investors including Abu Dhabi-based Aspen Digital, CBYF will offer a lower-risk path for institutions seeking Bitcoin exposure with yield. Unlike Ethereum or Solana, Bitcoin does not support staking, creating a gap in passive income opportunities that CBYF intends to address.
“Bitcoin yield funds have emerged to address this limitation, but they often require significant investment and operational risk,” Coinbase said.
The launch comes as institutional appetite for Bitcoin continues to climb. Bitcoin prices rose over 9% in the week leading up to April 28, fueled by a surge in ETF inflows totaling over $3 billion.
Coinbase Pushes SEC to Allow Staff Crypto Ownership
Separately, Coinbase’s Chief Legal Officer Paul Grewal urged the U.S. Office of Government Ethics (OGE) to rescind its 2022 guidance prohibiting SEC staff from owning cryptocurrencies. Grewal argued in letters to OGE Acting Director Jamieson Greer and new SEC Chair Paul Atkins that allowing crypto ownership is critical for regulators to properly understand the technology they are tasked with overseeing.
“To regulate technology, you need to understand it. To understand technology, you need to use it,” Grewal wrote.
The 2022 advisory banned SEC staff from buying, selling, or holding cryptocurrencies, treating them differently from stocks and other publicly traded securities.
Grewal suggested the SEC could grant waivers for members of its Crypto Task Force as an interim solution while broader reforms are considered. He also pointed to President Trump’s directive for agencies to submit crypto regulation recommendations within 90 days as a reason for urgency.
The regulatory environment for crypto in the U.S. has changed considerably since Gary Gensler’s resignation in January. The SEC has since dropped a number of lawsuits against crypto firms, including Coinbase, and recently signaled plans to end enforcement actions against blockchain company Dragonchain.