Arab Bank Switzerland Launches Bitcoin Yield Product with XBTO
XBTO, a crypto investment firm specializing in liquidity provision, has partnered with Arab Bank Switzerland to offer a Bitcoin yield product to its wealth management clients. This initiative reflects a broader institutional trend towards yield generation strategies utilizing digital assets.
The product leverages XBTO’s proprietary “diamond-hands” strategy, which underpins its existing Bitcoin yield fund. This fund utilizes a rules-based approach involving the selling of Bitcoin options to collect premiums while strategically accumulating positions during periods of market consolidation or dips. The product, regulated in Bermuda, has demonstrated an annualized return of approximately 5% and maintains a relatively moderate volatility profile.
“The maturation of institutional digital asset demand requires sophisticated solutions that go beyond simple exposure,” stated Javier Rodriguez-Alarcon, Chief Investment Officer and Head of Digital Asset Management at XBTO. “Our clients seek not just asset allocation but ways to generate income from their positions without triggering sales events.”
“We have observed significant interest from our wealth management clients,” commented Romain Braud, Head of Digital Assets at Arab Bank Switzerland. “They are actively seeking avenues to generate yield on their Bitcoin holdings, all transacted within a robust risk management framework.”
Historically, Bitcoin investment primarily relied on price appreciation. Newer mechanisms, including derivatives strategies and staking protocols, now enable holders to generate returns through premium collection or interest payments, without necessitating the sale of their underlying assets.
Institutional Appetite for Yield Solutions
Executive at Solv Protocol highlighted this growing trend at Token2049, noting an exponential increase in institutional interest in Bitcoin yield products. Such tools permit investment in the asset class while simultaneously pursuing revenue generation, offering an alternative or supplementary income stream.
