Coinbase, the third largest cryptocurrency exchange by volume, introduces the Bitcoin Rent Fund fund on May 1, aimed at offering Bitcoin (BTC) exhibition for institutional investors outside the USA.
The fund is aimed at an annual net refund from 4% to 8% compared to Bitcoin Holdings, According to to the post on the blog April 28 by Coinbase.
“To deal with the growing institutional demand for bitcoins’ performance, the management of Coinbase assets is excited about the introduction of the Bitcoin Fund Bitcoins Coinbase (CBYF)”, wrote the company.
The fund is supported by many investors, including ASpen Digital, a digital assets manager based in Abu Dhabi and regulated by the financial services regulation office.
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The performance will be generated through a cash and delivery strategy, through the difference between bitcoins and derivatives.
Unlike Ether (ETH) and Solana (SOL), Bitcoin owners cannot generate passive income through staking – a gap that the fund intends to fill in accordance with the announcement:
“Bitcoin funds have appeared to deal with this limitation, but these funds generally require institutional allocators to significant investments and operational risk.”
The fresh fund aims to reduce investment and operational risk usually related to Bitcoin crop products, which according to Coinbase will better adapt to the appetite for the risk of institutional investors.
Related: Stacks Asia is expanding Bitcoin initiatives with a partnership in Abu Dhabi
Bitcoin shoot driven mainly with the institutional interest
Coinbase quoted the growing institutional cryptographic adoption as the reason for the introduction of funds, which could have caused a significant recovery of Bitcoin prices over the past week.
Bitcoin increased by more than 9% in the week preceding April 28, strengthened by the inflow of the stock exchange fund (ETF), which recorded them the second highest inflow week of over $ 3 billion, as showed by Farside Investors.
Bitcoin recovery to USD 94,000 was mainly supported by the growing “ETF influence and corporate purchases”, among delays in retail trade, Ryan Lee, the main Bitget Research analyst, said Cointelegraph, adding:
“Retail interest may increase if Bitcoin beat $ 100,000, driven by media noise and Fomo. Monitor resistance 94,000–95,000 USD for potential retail involvement.”
On April 21, co -founder of Bitmex, Arthur Hayes, predicted that this could be the “last chance” to buy Bitcoin below 100,000 USD, because the upcoming redemption of the US treasury may signal another significant significant catalyst for the Bitcoin price.
https://www.youtube.com/watch?v=kqzhvt77xkw
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