Coinbase’s Bitcoin Yield Fund, launching May 1, 2025, targets non-US institutional investors with a 4-8% annualized return using a cash-and-carry trade strategy, which exploits price differences between Bitcoin and its derivatives for profit.
The cash-and-carry trade involves buying Bitcoin and simultaneously selling its futures at a higher price, locking in the spread as profit when the futures contract expires, a common arbitrage tactic in crypto markets.
This move reflects growing institutional interest in Bitcoin as a yield-generating asset, despite regulatory hurdles in the US, where similar funds face stricter oversight under SEC rules like Regulation D.
