Coinbase, one of the largest crypto exchanges in the world, has just launched the Coinbase US Bitcoin Yield Fund (USCBYF) to enable accredited investors in the US to earn excess returns over simply holding Bitcoin.
The Coinbase exchange is already recognized for a strong combination of regulatory compliance and trust, and commonly acts as an institutional partner for trading, financing, and custody of institutional crypto assets.
If you’re an accredited investor, Coinbase’s new Bitcoin Yield Fund could be an ideal opportunity to collect yields from crypto’s biggest asset.
Meeting US Investor Demand for Bitcoin Yield
From its humble beginnings as a peer-to-peer electronic cash system, Bitcoin has become recognized as a global monetary alternative to fiat and a store of value like gold, designed to serve as a hedge against inflation.
As investors diversify their portfolios into Bitcoin, the demand for yield-generating products has increased, too. Earlier this year, Coinbase launched its Coinbase Bitcoin Yield Fund for non-US investors to resounding success, and US investors demanded the same product.
As a result, Coinbase has launched the Coinbase US Bitcoin Yield Fund (USBYF), designed to deliver BTC performance and add extra yield specifically to accredited investors in the US.
A Close Look at the Coinbase US Bitcoin Yield Fund (USCBYF)
The USCBYF strategy is available only to US-accredited investors, while non-US clients still have access to the Coinbase Bitcoin Yield Fund (CBYF). To subscribe to the fund, you can use BTC, USD, or USDC, and earn the return of Bitcoin (BRR) plus yield. The yield is generated from BTC private credit lending and basis trading.
Coinbase plans to launch this product in late 2025 and then make it available in certain retirement accounts in 2026.
Coinbase Partnership with iTrustCapital
iTrustCapital is the largest technology provider for alternative assets, enabling users to access crypto, digital assets, and precious metals through self-directed, tax-advantaged IRA and non-IRA accounts. This provider already boasts over $15 billion in crypto transactions and more than 11,000 positive reviews, which have rated iTrustCapital at 4.9 stars.
Thanks to this partnership, Coinbase can offer its USCBYF to tax-deferred IRA accounts and improve how investors save for their retirement.
Bringing Institutional and Regulated Standards to the Crypto Yield Market
Coinbase Asset Management (CBAM) is a subsidiary of Coinbase that manages digital asset strategies for institutional investors. CBAM is a Registered Investment Advisor (RIA) with the Securities and Exchange Commission.
It’s also registered under the Commodity Futures Trading Commission as a collective investment fund and can provide advice on trading for compensation.
This level of regulation and compliance is a major draw for US-accredited investors who are looking for a platform that offers a regulated Bitcoin yield fund.
How Does the Fund Create Returns for Investors?
Bitcoin, as an asset and by itself, doesn’t generate yield, and investors can’t stake it like Solana or Ethereum. Bitcoin yield funds address this shortcoming.
These funds generate fixed income via institutional counterparties using BTC private credit lending, typically over the counter. The lender earns interest payments from the borrowers who may use the loaned Bitcoin for trading, hedging, or operational needs. This investment strategy avoids high-interest Bitcoin loans and systemic call selling to reduce risk for investors.
Alternatively, yield funds can use a strategy called basis trading. This strategy aims to capture the spread, or the price difference between Bitcoin’s price on the spot market and futures contracts on exchanges like the CME, to bring additional returns. This is possible because BTC futures typically trade at a premium compared to spot prices.
Even though this strategy aims to enhance Bitcoin’s performance, not replace it, there are no guaranteed returns, and performance may vary depending on market conditions.
Unlocking Institutional Access to Earning Bitcoin Yield
The launch of the USCBYF strategy marks Coinbase’s broader institutional strategy that aims to deliver similar returns to US accredited investors as the CBYF strategy, which was already available for non-US clients.
By expanding its features, Coinbase continues to bridge the gap between traditional finance and crypto, while offering yield-earning products to its clients under regulated structures.
Getting Started
To subscribe to the Coinbase US Bitcoin Yield Fund (USCBYF), you must be a US-accredited investor.
If you’re not an accredited investor, you have to meet the following criteria to qualify as an accredited investor: Have a net worth over $1 million excluding primary residence, or you earned over $200,000 (individually) or $300,000 (with spouse or partner) in each of the prior two years and expect to earn the same amount in the current year. Next:
- Visit the Coinbase website and create an account.
- Subscribe to the USCBYF using BTC, USD, or USDC.
Alternatively, you can subscribe to the fund via iTrustCapital’s IRA accounts from 2026.
Not a US Investor? Sign Up and Earn Up to €150 After Your First Trade
While Coinbase’s USCBYF offer is directed towards accredited investors in the US, the exchange also caters to other investor types in the US and overseas.
In its latest promotion, new Coinbase clients in eligible European countries can earn up to 150 EUR after signing up and making their first crypto purchase.
If you’re not a Coinbase user yet, this may be an excellent opportunity to jump-start your crypto journey with a 150 EUR bonus.
