Coinbase’s Bitcoin Yield Fund Lures Investors with Armstrong’s ’Warm Waters’ Pitch

Brian Armstrong throws open the doors to crypto yield farming—just as Wall Street starts eyeing the exits. Coinbase’s new Bitcoin Yield Fund promises returns in a market where traditional finance keeps tripping over its own red tape.

Active crypto whales get first dibs. Passive index-fund dinosaurs? They’ll need a DeFi primer—and maybe a stiff drink.

Another ’groundbreaking’ product that’ll either mint millionaires or become a case study in crypto hubris. Place your bets.

According to @loganb.sui, “It’s under-appreciated just how much @coinbase has done for the industry in the last four years from a legal and policy perspective.”

The user went on to say that now the new admin is friendlier, the new SEC is constructive, and the results of this will be regulatoroy clarity, a consequent scaling of the industry, a greater institutional engagement with the industry, and a general maturation. 

“However, it will also inevitably and undoubtedly mean ever-increasing, intense competition for every aspect of Coinbase’s business,” the user concluded. 

It’s under-appreciated just how much @coinbase has done for the industry in the last four years from a legal and policy perspective. Especially since the fruits of this labor, though profoundly beneficial to the entire space, will likely hurt $COIN in the market.

For a long…

— loganb.sui (@TheWhyOfFI) April 28, 2025

Replying to this Armstrong said, The water is warm, everyone should come in! This is the only way we’ll update the global financial system, providing true individual liberty and sovereignty for all.

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Coinbase Asset Management Prepares To Launch Bitcoin Yield Fund

COINBASE TO OFFER YIELD.

Goal is 4-8% yield.

Here are things you should know:

Bitcoin does not generate yield.

COINBASE will attempt to collect arbitrage on a basis trade between support and futures.

This will be called The Bitcoin Yield fund.

Deposit Bitcoin, withdraw… pic.twitter.com/NslY7UcQYz

— George Bodine (@Jethroe111) April 28, 2025

A 28 April 2025 Bloomberg report revealed that the Coinbase Asset Management is preparing to launch a Bitcoin yield fund on 1 May 2025. Apparently, Coinbase will exclusively target non-US institutional investors and give them another way to earn yield on their Bitcoin holdings. 

Commenting on the new release, Sebastian Bea, President of Coinbase Asset Management said, “We believe the Bitcoin Yield Fund is particularly well suited to the task, given its conservative and compliant investment strategy.”

Armstrong added, “Coinbase will continue to lead as the primary financial account for anyone in crypto – with the most trusted and easiest to use products, and deep crypto expertise as it’s been our only focus since the beginning.”

Key Takeaways

•  Armstrong’s comments come as the crypto market shakes off years of regulatory turbulence and reputational setbacks. 

• Coinbase, with its 66% share of the US crypto trading market and around 10 million users, is well-positioned to benefit from this next phase, even as it faces new rivals.