- Coinbase will launch a Bitcoin Yield Fund to target 4-8 percent annual returns while using third-party custody to minimize counterparty risks.
- Institutional demand for Bitcoin remains strong as U.S. spot Bitcoin ETFs recorded $2.9 billion in net inflows during the past week.
- Ethereum ETFs registered their first positive net inflow in eight weeks, signaling improving sentiment toward the second-largest cryptocurrency.
Coinbase will launch its Bitcoin Yield Fund on May 1, offering a conservative investment strategy aimed at delivering 4 to 8 percent net returns in Bitcoin annually. Investors will subscribe to and redeem from the fund using Bitcoin, ensuring exposure remains fully aligned with the asset itself over a complete market cycle.
In an official statement, Coinbase revealed that the new fund responds to rising institutional interest in Bitcoin-based yield opportunities. Unlike traditional financial assets or digital assets such as Ethereum and Solana that offer staking rewards, Bitcoin does not inherently generate yield. Existing Bitcoin yield products often expose investors to significant operational and investment risks. Coinbase intends to minimize these risks by using third-party custody solutions to execute trades while keeping assets securely stored, aiming to lower counterparty exposure.
Bitcoin Sees Renewed Inflows from Institutional Investors
Recent data from Glassnode supports the strengthening institutional demand for Bitcoin. United States spot Bitcoin exchange-traded funds (ETFs) recorded a net inflow of 31,323 BTC over the past week, valued at approximately $2.9 billion. In Bitcoin terms, this represented the fifth-largest weekly inflow on record. In dollar terms, it ranked as the third-largest weekly inflow, following record figures posted in November and December of 2024.
In addition to Bitcoin’s positive momentum, Ethereum has also seen a shift in investor sentiment. Glassnode reported that Ethereum ETFs experienced a net inflow of around 40,000 ETH after enduring eight straight weeks of outflows. Although the inflow amount remains modest, it suggests growing confidence among institutional investors toward Ethereum alongside Bitcoin.
Coinbase’s Bitcoin Yield Fund highlights a strategic move to meet the changing needs of institutional investors seeking reliable Bitcoin exposure with reduced risks. At the same time, growing ETF inflows underline the strong institutional interest in leading digital assets as the market continues to mature.
