{"id":22581,"date":"2025-04-17T15:01:53","date_gmt":"2025-04-17T15:01:53","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=22581"},"modified":"2025-04-17T15:01:53","modified_gmt":"2025-04-17T15:01:53","slug":"crypto-for-advisors-generating-yield-with-bitcoin","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=22581","title":{"rendered":"Crypto for Advisors: Generating Yield With Bitcoin"},"content":{"rendered":"
\n

In today\u2019s crypto for advisors, Todd Bendell<\/a> from Amphibian Capital breaks down bitcoin yield products as a strategy to grow bitcoin holdings beyond price appreciation.<\/p>\n

Then, Rich Rines<\/a>, an initial Core DAO developer, provides guidance to Bitcoin developers in Ask an Expert.<\/p>\n

Exclusive event alert for financial advisors: Join CoinDesk for Wealth Management Day on May 15th at Consensus Toronto. Registered wealth advisors are provided with their own day of networking and learning where they will acquire timely and actionable information about digital assets. Approved advisors receive a complimentary 3-day Platinum Pass ($1,750 value) to Consensus. Apply today<\/a>.<\/p>\n

\u2013 Sarah Morton<\/a><\/p>\n

You\u2019re reading Crypto for Advisors<\/a>, CoinDesk\u2019s weekly newsletter that unpacks digital assets for financial advisors. Subscribe here<\/a> to get it every Thursday.<\/p>\n

The Next Frontier for Bitcoin Holders: Generating BTC-on-BTC Yield<\/h3>\n

Bitcoin was never meant to sit idle.<\/p>\n

For over a decade, bitcoin has served as a digital store of value, a hedge against monetary debasement and more recently, a core allocation in institutional portfolios. As the asset matures and infrastructure improves, long-term holders are asking a new question: How do I put my bitcoin to work \u2014 without leaving the Bitcoin ecosystem?<\/p>\n

The answer lies in a growing but underexplored category of strategies: BTC-on-BTC yield.<\/p>\n

Let\u2019s be clear: this isn\u2019t about lending your BTC on unregulated platforms or chasing high annual percentage yields (APYs) \u00e0 la BlockFi.<\/a> That playbook collapsed under the weight of counterparty risk and opacity. What\u2019s emerged over the last two years is a more institutional alternative \u2014 diversified, risk-managed access to systematic arbitrage and quantitative strategies, all denominated in bitcoin.<\/p>\n

Why BTC-native yield matters<\/p>\n

For most assets, it\u2019s a given that money should work for you. We don\u2019t keep dollars under a mattress or tucked away on a thumb drive \u2014 we invest them. Yet in the bitcoin world, the dominant narrative has long been \u201chold and wait.\u201d<\/p>\n

That mindset made sense when bitcoin was fighting for legitimacy. But in today\u2019s environment \u2014 where BTC is being adopted by sovereign wealth funds and traded on major exchanges \u2014 long-term holders need better tools.<\/p>\n

BTC-on-BTC yield solves this. It aligns with the ethos of accumulating more BTC but does so through institutional-grade strategies that aim to generate returns in BTC, not just on BTC. That distinction matters.<\/p>\n

Cold storage isn\u2019t a strategy<\/p>\n

There\u2019s also a myth that simply holding bitcoin in cold storage is the safest option. The phrase \u201cnot your keys, not your coins\u201d has become dogma \u2014 but it deserves a second look.<\/p>\n

In reality, cold storage comes with its own risks: human error, hardware failure, loss of keys and in many cases, an inability to generate any yield whatsoever. Meanwhile, professional custodians \u2014 regulated, insured and audited \u2014 are now standard infrastructure providers in digital asset management.<\/p>\n

For allocators managing material BTC positions, yield-generating custody isn\u2019t a tradeoff. It\u2019s an upgrade.<\/p>\n

How these strategies work<\/p>\n

Today\u2019s BTC-native yield opportunities span a wide range \u2014 from delta-neutral basis trades and statistical arbitrage to DeFi yield farming and machine learning-driven quant execution \u2014 but all settled in BTC.<\/p>\n

Returns are calculated and distributed in kind. The objective is simple: accumulate more BTC over time, without needing to rely solely on price appreciation.<\/p>\n

By allocating across a diversified mix of strategies and managers, investors can pursue consistent BTC growth while mitigating single-strategy or single-manager risk.<\/p>\n

Why BTC-on BTC yield is timely<\/p>\n

Several forces are converging right now:<\/p>\n

Volatility has returned. Major liquidation events \u2014 like the $10 billion flush in February <\/a>\u2014 create dislocations that sophisticated funds can capitalize on.<\/p>\n

Infrastructure is stronger than ever. Custody, execution and risk tools have matured significantly since the last cycle.<\/p>\n

Institutional interest is real. ETFs have opened the floodgates \u2014 but most capital is still under-allocated and under-deployed.<\/p>\n

In short, bitcoin is growing up. The question is whether the strategies around it will grow with it.<\/p>\n

Rethinking HODLing<\/p>\n

BTC-on-BTC yield and long-term holding aren\u2019t mutually exclusive. Allocators can continue to hold core BTC positions while using active strategies to pursue steady accumulation.<\/p>\n

That requires moving beyond cold storage maxims and exploring yield strategies that reflect the sophistication of today\u2019s markets. With proper risk controls, BTC-native yield offers a pragmatic path to accumulate more BTC without abandoning its core principles.<\/p>\n

The bottom line is that bitcoin doesn\u2019t have to sit on the sidelines. It can move with the market \u2014 and grow with it.<\/p>\n

For allocators thinking in decades, BTC-on-BTC yield opens the door to a more productive bitcoin strategy \u2014 one that matches conviction with action.<\/p>\n

– Todd Bendell, Managing General Partner, Amphibian Capital<\/a><\/p>\n

Ask an Expert <\/h3>\n

Q. What\u2019s the best way to align early developer incentives with long-term protocol value?<\/p>\n

A. The key is to reward real product-market fit and real users \u2014 not short-term speculation. That starts with building tight relationships and solving problems for real communities. From there, it’s about fostering an \u201ceat what you kill\u201d ecosystem, in which builders who ship products people actually use are rewarded with real economic upside \u2014 not just points, grants or temporary incentives. When developers are compensated based on the value they create for users, long-term alignment takes care of itself.<\/p>\n

Q. When just starting out in crypto, how can developers filter for signal over noise?<\/p>\n

A. Don\u2019t just chase the hot thing \u2014 look for what will still matter in 5 to 10 years. That\u2019s one of the key reasons Bitcoin remains a compelling foundation for builders. It has dedicated users, immense value and a clear product-market fit. Developers should focus on real usage and demand instead of short-term token price action. If you’re building something that keeps people engaged because it’s useful \u2014 not because it’s yield-farming season \u2014 you\u2019re already filtering signal from noise.<\/p>\n

Q. What lessons from Bitcoin\u2019s design philosophy are still underutilized?<\/p>\n

A. Bitcoin is dominant not because it does the most, but because it does one thing better than anyone else. Its product-market fit as digital gold is crypto\u2019s most proven use case \u2014 and yet it\u2019s still underrated. Too many forget that simplicity with real utility wins. Building around Bitcoin and extending its utility without compromising its foundation remains one of the most underrated opportunities in the space today.<\/p>\n

– Rich Rines, an initial contributor, Core DAO<\/a><\/p>\n

Keep Reading<\/h3>\n

CoinDesk’s Digital Assets Quarterly Report<\/a> provides a comprehensive analysis of the crypto market\u2019s performance.<\/p>\n

Sweden<\/a> is the latest country to explore using bitcoin as a strategic reserve asset.<\/p>\n

The U.S. Department of Justice announced the end of its crypto \u201cenforcement by prosecution\u201d<\/a> policies.<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

In today\u2019s crypto for advisors, Todd Bendell from Amphibian Capital breaks down bitcoin yield products as a strategy to grow bitcoin holdings beyond price appreciation. Then, Rich Rines, an initial Core DAO developer, provides guidance to Bitcoin developers in Ask an Expert. Exclusive event alert for financial advisors: Join CoinDesk for Wealth Management Day on […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"iawp_total_views":0,"footnotes":""},"categories":[2],"tags":[3,4,5],"class_list":["post-22581","post","type-post","status-publish","format-standard","hentry","category-news","tag-crypto","tag-doge","tag-news"],"_links":{"self":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/22581","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=22581"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/22581\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=22581"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=22581"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=22581"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}