Coinbase Asset Management rolls a new fund for institutions to receive a dividend on their Bitcoin (BTC) Holdings.

The opening on May 1 for non-American institutional investors, Coin Base Bitcoin Yield Fund, aims to deliver an annual to 8% annual net return, according to a press release on Monday.

Among those who support the fund, Abu Dhabi-based Aspen Digital said the yield will initially be generated through basic trade, with lending and setting strategies to be used in the future.

The so-called Bitcoin Basic Trade involves the capitalization of the spread between futures and spot markets. It became popular at the end of 2024 when hedge funds noted a record height of $ 14.2 billion in BTC short positions while at the same time bought Spot Bitcoin ETF shares.

The strategy produces yields depending on the spread between both markets but is not immune to risk. For example, if a unit was short $ 1 billion on a BTC future product and the price of BTC was too wild wave, this device would have to continue adding margin to avoid liquidation.

As trade becomes more crowded, spreading and subsequent yields can become very thin. This has already led to a number of hedge funds leaving trade early this year, with the short number of Chicago Mercantile Exchange, now standing at $ 8.4 billion, down from $ 14.2 billion four months before.

Coinbase’s new product touches memories of the former crypto lender Blockfi’s yield platform, which opened in 2019, but ultimately failed along with degraded prices in 2022.

However, Blockfi’s fund differs from Coinbases’s latest product, generating its dividend through loans rather than a lower risk trade.