Coinbase Set to Launch Bitcoin Yield Fund as XRP ETF Approvals Gain Momentum AllinCrypto April 30, 2025
Coinbase Asset Management plans to launch a Coinbase Bitcoin Yield Fund on May 1, 2025, for non-institutional investors.
According to Bloomberg, the fund will allow the average investor to earn yields on their Bitcoin holdings by participating in Coinbase’s new venture, targeted at non-US holders.
Returns on the fund will vary, but the firm has stated that a net return of between 4 – 8%. Meanwhile, XRP ETF approvals are heating up.
Coinbase Bitcoin Yield Fund and XRP ETFs coming in Q1 2025
Coinbase’s new yield fund will be targeted at non-USD Coinbase users holding Bitcoin instead of institutional investors within the United States.
The fund will utilize basis trading to generate yields for delegators. Basis trading involves leveraging the difference between the spot price of an asset and its perps price.
While Bitcoin is going up, spot prices can differentiate between perps prices significantly, creating a premium for profits to be made.
Basis trading can come with certain risks despite it being a low-risk trading strategy for profit yielding. According to Coinbase, the exchange will use modest leverage and secure assets using Coinbase’s own custody services.
Returns for participants can range between 4% to 8% per year. Coinbase has said this figure, along with actual returns, may vary.
From Sebastian Bea, President of Coinbase Asset Management:
“The next cycle needs better products to enable institutional investment in digital assets. We believe the Bitcoin Yield Fund is particularly well suited to the task, given its conservative and compliant investment strategy.”
Institutional interest driving altcoin adoption
Coinbase’s Bitcoin Yield Fund comes at a time when non-crypto institutions are entering the crypto industry with their own tailored exchange-traded funds.
In recent months, Teucrium, an investment firm, launched a 2x Daily XRP exchange-traded fund, allowing holders to trade XRP using 2x leverage.
ProShares Trust also announced plans to launch a leveraged XRP ETF by the end of April, according to recent sources. The ProShares Trust funds would allow holders to maintain short positions on Ripple’s native token.
As institutional adoption increases, we may see new ways of earning yield on crypto being introduced by exchanges and investment firms, especially utilizing stablecoins such as USDC, due to being highly regulated.
The post Coinbase Set to Launch Bitcoin Yield Fund as XRP ETF Approvals Gain Momentum first appeared on AllinCrypto.
