From trading to yield: What institutions now want from crypto
Institutional crypto investment is shifting from simple price appreciation to actively seeking yield through strategies like lending and options selling.Summary
Coinbase's head of institutional, Brett Tejpaul, states that the 'second wave' of institutional money entering crypto is focused on generating yield, moving beyond just holding assets for long-term appreciation. This shift is evidenced by products like Coinbase's tokenized Bitcoin Yield Fund and BlackRock's launch of an Ethereum yield-bearing ETF.
This new wave of institutional interest also emphasizes leveraging blockchain technology for faster payments, settlement, and transparency through tokenization and stablecoins. Major firms like BlackRock, JPMorgan, and Franklin Templeton are exploring tokenized funds and deposits, driven by clearer regulatory frameworks like the GENIUS Act and the proposed CLARITY Act.
The first wave of institutional money focused on exposure or arbitrage, but this second group, including banks and payments firms, is building products on crypto rails. While adoption is gradual, the focus has moved from simply buying crypto to utilizing its capabilities for portfolio enhancement, with 24/7 trading and near-instant settlement being key practical appeals.
(Source：CoinDesk)