Coinbase Says Institutional Crypto Capital Is Shifting to Yield Strategies
Early institutional allocations to Bitcoin and Ether largely focused on price appreciation or arbitrage. As investors hold these positions for longer, a second wave of demand is emerging for assets that can generate cash flow while investors wait for prices to rise. Yield products are also bringing crypto closer to traditional structured products and prompting major financial institutions to evaluate stablecoins, tokenization and real-time settlement.
On March 24, Coinbase institutional head Brett Tejpaul said the second wave of capital had begun. On March 19, Coinbase partnered with Apex Group, which services more than $3.5 trillion in assets, to launch a tokenized Bitcoin Yield Fund on Base targeting mid-single-digit returns. BlackRock’s ETHB, which includes staking yield, began trading on February 18.
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The history behind this eventCoinbase Partners With Apex to Tokenize Bitcoin Yield Fund on Base
Unlike proof-of-stake assets such as Ether, Bitcoin cannot natively generate yield. Coinbase Asset Management therefore launched the Coinbase Bitcoin Yield Fund on May 1, 2025, targeting non-U.S. investors and aiming to generate annualized net Bitcoin returns of 4%–8% over a full market cycle. Bringing the fund onchain is expected to reduce operating costs, accelerate settlement and broaden distribution.
On March 19, 2026, Coinbase Asset Management and Apex Group, which services more than $3.5 trillion in assets, announced the issuance of tokenized fund shares on Base. The product uses the permissioned ERC-3643 standard, with Apex serving as the onchain transfer agent responsible for holder records and compliant transfers. It will initially be available only to institutional and qualified investors outside the United States.
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