Coinbase Asset Management is preparing to deploy the Coinbase Bitcoin Ildo Fund (CBYF) on May 1st.
According to a statement on April 28, Coinbase described CBYF as a conservative investment strategy that aims to generate annual net profits between 4% and 8% in a typical market cycle.
The fund is designed to provide international institutional investors with a new way to earn direct returns with Bitcoin. This product will be exclusively available to investors outside the US.
This move is seen as a strategic effort to broaden the appeal of Bitcoin, especially among traditional investors.
Crypto analyst Matheus Celtic suggests that CBYF can attract baby boomers and other conservative investors who support income-generating assets such as bonds, dividend stocks and deposit certificates.
Coinbase Bitcoin Yield Fund
Coinbase emphasized that Bitcoin yield funds often have substantial investment and operational risks. This is because Bitcoin does not generate yields independently, unlike digital assets such as Ethereum and Solana, where you can wager for passive income.
Coinbase’s funds are designed to solve the problem by enabling Bitcoin holders to generate returns without taking any major risks.
Despite its objectives, Coinbase has revealed that the fund will avoid speculative Bitcoin lending markets and aggressive trading options. Instead, we focus on maintaining a stable investment environment consistent with the careful risk appetite of institutional investors.
The fund allows monthly subscriptions and redemptions and requires a five-year notice period.
Coinbase aims to manage up to $1 billion in assets under the fund, Bitcoin Holdings protected by qualified custodians.
Additionally, exchanges plan to use third-party custody integration to manage transactions without moving assets out of secure storage. This structure is expected to minimize the risk of counterparties. This is a serious concern for the digital asset sector.
Aspen Digital, a digital asset manager that regulates the Abu Dhabi-based Financial Services Regulator (FSRA), helps the fund seed. Additionally, Aspen will serve as an exclusive wealth distribution partner for the United Arab Emirates and Asia.
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