Coinbase, the third-largest cryptocurrency exchange globally, is set to launch the Coinbase Bitcoin Yield Fund on May 1, providing Bitcoin (BTC) exposure to institutional investors outside the US. The fund aims to deliver an annual net return of 4% to 8% on Bitcoin holdings, as per a blog post by Coinbase on April 28. The fund, supported by various investors including Aspen Digital, a digital asset manager in Abu Dhabi, regulated by the Financial Services Regulatory Authority, will utilize a cash-and-carry strategy to generate yield through the price difference between spot Bitcoin prices and derivatives. Unlike Ethereum (ETH) and Solana (SOL), Bitcoin holders cannot earn passive income through staking, prompting the introduction of this fund to cater to this gap. Institutional demand for Bitcoin yield is on the rise, leading Coinbase Asset Management to launch the fund, aiming to mitigate investment and operational risks typically associated with Bitcoin yield products. This move aligns with the risk appetite of institutional investors. The launch of the fund comes against the backdrop of increasing institutional interest in Bitcoin, which has been a significant driver of Bitcoin’s recent price recovery, up by over 9% in the week leading to April 28. The surge in Bitcoin’s price was supported by substantial exchange-traded fund (ETF) inflows, indicating growing corporate buying interest. BitMEX’s Arthur Hayes suggested this might be the last opportunity to buy Bitcoin below $100,000, as the anticipated US Treasury buybacks could be a crucial catalyst for Bitcoin’s price. The overall momentum in Bitcoin is largely influenced by institutional adoption, with ETF inflows and corporate investments playing a pivotal role. Retail interest is expected to surge if Bitcoin surpasses $100,000, driven by media hype and FOMO. The resistance levels between $94,000-$95,000 are critical for potential retail re-engagement in Bitcoin. This development underscores the evolving landscape of institutional investment in the cryptocurrency market, shaping the future trajectory of digital assets.