{"id":24197,"date":"2025-04-28T16:47:07","date_gmt":"2025-04-28T16:47:07","guid":{"rendered":"https:\/\/dogewisperer.com\/?p=24197"},"modified":"2025-04-28T16:47:07","modified_gmt":"2025-04-28T16:47:07","slug":"coinbase-targeting-4-8-returns-with-new-bitcoin-yield-fund","status":"publish","type":"post","link":"https:\/\/dogewisperer.com\/?p=24197","title":{"rendered":"Coinbase Targeting 4%-8% Returns With New Bitcoin Yield Fund"},"content":{"rendered":"<div>\n<p>Coinbase Asset Management is rolling out a new fund for institutions to receive a yield on their bitcoin (BTC) holdings.<\/p>\n<\/p>\n<p>Opening on May 1 for non-US institutional investors, the Coinbase Bitcoin Yield Fund aims to deliver a 4% to 8% annualized net return, according to a <a href=\"https:\/\/www.coinbase.com\/blog\/coinbase-asset-management-launches-the-coinbase-bitcoin-yield-fund\">press release<\/a> on Monday. <\/p>\n<p>Among those backing the fund, Abu Dhabi-based Aspen Digital said yield will initially be generated through basis trading, with lending and options strategies to be used in the future.<\/p>\n<p>The so-called bitcoin basis trade involves capitalizing on the spread between futures and spot markets. It became popular at the tail end of 2024 as hedge funds notched a record high of $14.2 billion in BTC short positions, whilst simultaneously buying spot bitcoin ETF shares.<\/p>\n<p>The strategy produces yields depending on the spread between both markets, but isn&#8217;t immune to risk. For instance, if an entity was short $1 billion on a BTC futures product and the price of BTC was to wildly surge, that entity would need to keep adding margin to avoid liquidation.<\/p>\n<p>Also, as the trade becomes more crowded, the spread and subsequent yield could become very thin. This has already led to a number of hedge funds exiting the trade early this year, with the short figure on <a href=\"https:\/\/www.theblock.co\/data\/crypto-markets\/cme-cots\/open-interest-of-cme-bitcoin-futures-by-trader-category-short\">Chicago Mercantile Exchange<\/a> now standing at $8.4 billion, down from $14.2 billion four months prior.<\/p>\n<p>Coinbase\u2019s new product stirs memories of former crypto lender BlockFi&#8217;s yield platform, which opened in 2019 but ultimately failed alongside crashing prices in 2022.<\/p>\n<p>BlockFi\u2019s fund, however, differed from Coinbase\u2019s latest product in that it generated its yield through lending, rather than a lower-risk basis trade.<\/p>\n<\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p>Coinbase Asset Management is rolling out a new fund for institutions to receive a yield on their bitcoin (BTC) holdings. Opening on May 1 for non-US institutional investors, the Coinbase Bitcoin Yield Fund aims to deliver a 4% to 8% annualized net return, according to a press release on Monday. Among those backing the fund, [&hellip;]<\/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-24197","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\/24197","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=24197"}],"version-history":[{"count":0,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=\/wp\/v2\/posts\/24197\/revisions"}],"wp:attachment":[{"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=24197"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=24197"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/dogewisperer.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=24197"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}