XBTO and Arab Bank Switzerland Introduce Bitcoin Yield Product for Institutional Investors
XBTO, a prominent crypto investment firm and liquidity provider, has teamed up with Arab Bank Switzerland to offer a Bitcoin yield product designed for institutional clients. This partnership reflects the increasing institutional interest in BTC yield products as part of wealth management strategies.
Exploring the Diamond-Hands Strategy
The product employs XBTO’s proprietary ‘diamond-hands’ strategy, which focuses on selling Bitcoin options to generate premiums while strategically accumulating additional BTC during market downturns. Based in Bermuda, this regulated approach has achieved annualized returns of approximately 5%, with relatively low volatility.
Addressing Institutional Demand for Crypto Solutions
Javier Rodriguez-Alarcon, Chief Investment Officer at XBTO, highlights the necessity for advanced digital asset solutions that go beyond basic exposure. Romain Braud, Head of Digital Assets at Arab Bank Switzerland, points to rising client demand for yield-generating opportunities on Bitcoin holdings within a structured risk management framework.
Understanding the Risks and Market Dynamics
- Potential for impermanent loss
- Ongoing regulatory uncertainties
- Exposure to market volatility
Other financial players, including Hilbert Capital and Coinbase, are also developing similar Bitcoin yield products, signaling a wider industry trend toward these innovative financial instruments.
