Crypto investment firm XBTO, in collaboration with Arab Bank Switzerland, launches a yield product for Bitcoin, reflecting the growing institutional interest in such offerings.
Partnership Between XBTO and Arab Bank Switzerland
XBTO, a crypto investment firm, announced a partnership with Arab Bank Switzerland to provide a Bitcoin yield product for the bank's wealth management clients. This partnership highlights the increasing interest of financial institutions in yield-oriented products related to Bitcoin.
Strategy and Expected Results
According to XBTO, the new product will utilize their "diamond-hands" strategy, which is used in the company's Bitcoin yield fund. This strategy involves selling Bitcoin options to earn premiums while accumulating assets during market dips. Regulated in Bermuda, the product has reported an annualized return of approximately 5% with relatively low volatility. Javier Rodriguez-Alarcon, Chief Investment Officer at XBTO, stated, "The maturation of institutional digital asset demand requires sophisticated solutions that go beyond simple exposure."
Risks and Other Bitcoin Yield Products
While Bitcoin yield products may seem attractive, they also carry certain risks, including impermanent loss, lack of regulatory clarity, market volatility, and issues within smart contracts. Other companies exploring Bitcoin yield products include Hilbert Capital with their Bitcoin Yield Solution, Purpose Investments with the Purpose Bitcoin Yield ETF, and NEOS via its Bitcoin High Income ETF. Coinbase also launched its Coinbase Bitcoin Yield Fund in 2025.
The partnership between XBTO and Arab Bank Switzerland underscores the growing interest in Bitcoin yield products despite existing risks. Such innovations may open new opportunities for institutional investors.
