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-0.00118565702995617 -0.000215663122439361 0.000358294869325217 0.000627873772374383 0.00611748052537494 0.00611748052537494 0.00611748052537494 0.00611748052537494
Stock impact report

Coinbase Targeting 4%-8% Returns With New Bitcoin Yield Fund [Yahoo! Finance]

Coinbase Global, Inc. - Class A (COIN) 
US:NASDAQ Investor Relations: convertedorganic.com
Company Research Source: Yahoo! Finance
Opening on May 1 for non-US institutional investors, the Coinbase Bitcoin Yield Fund aims to deliver a 4% to 8% annualized net return, according to a press release on Monday. Among those backing the fund, Abu Dhabi-based Aspen Digital said yield will initially be generated through basis trading, with lending and options strategies to be used in the future. The so-called bitcoin basis trade involves capitalizing on the spread between futures and spot markets. It became popular at the tail end of 2024 as hedge funds notched a record high of $14.2 billion in BTC short positions, whilst simultaneously buying spot bitcoin ETF shares. The strategy produces yields depending on the spread between both markets, but isn't immune to risk. For instance, if an entity was short $1 billion on a BTC futures product and the price of BTC was to wildly surge, that entity would need to keep adding margin to avoid liquidation. Also, as the trade becomes more crowded, the spread and subsequent yie Show less Read more
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