Coinbase's Brett Tejpaul reports a shift in institutional crypto investment strategies towards seeking yield rather than just price appreciation. This trend is leading to new financial products aimed at generating income from digital assets.
Brett Tejpaul, head of institutional at Coinbase, stated that institutional investors are increasingly focused on generating steady income from their crypto holdings, such as Bitcoin and Ether. This shift marks the beginning of what he describes as the 'second wave' of institutional investment in the digital asset sector. Coinbase recently launched a tokenized share class of its Bitcoin Yield Fund, which aims to generate yield through strategies like selling call options and lending Bitcoin, with target returns in the mid-single digits.