Coinbase Asset Management is implementing a new fund for institutions to receive performance in their Bitcoin (BTC) holdings.
When opening on May 1 for non -American institutional investors, the Bitcoin Coinbase performance fund aims to deliver an annualized performance from 4% to 8%, according to a press release on Monday.
Among those who support the Fund, Aspen Digital, based in Abu Dhabi, said the performance will initially be generated through basic trade, with loan strategies and options that will be used in the future.
The so -called Bitcoin base trade implies capitalizing the propagation between futures and spot markets. It became popular at the end of the tail of 2024, since the coverage funds obtained a record of $ 14.2 billion in short positions of BTC, while simultaneously boughting the actions of Spot Bitcoin ETF.
The strategy produces yields depending on the propagation between both markets, but is not risky. For example, if an entity was short of $ 1 billion in a product of BTC futures and the price of BTC was going to increase wildly, that entity would need to continue adding margin to avoid liquidation.
In addition, as trade fills more, propagation and subsequent performance could become very thin. This has already led to a series of coverage funds that leave trade earlier this year, with the brief figure in Chicago Mercantile Exchange now at $ 8.4 billion, below $ 14.2 billion four months before.
The new Coinbase product agitates the memories of the performance platform of the former cryptographic lender, which opened in 2019, but finally failed together with the clashes prices in 2022.
The Blockfi fund, however, differed from the last coinbase product in which it generated its performance through loans, instead of a lower -risk base trade.
