XBTO, with the support of Arab Bank Switzerland, recently introduced a Bitcoin yield product designed for institutional clients. This announcement coincides with a growing trend of companies offering Bitcoin yield products. They want to meet that insatiable demand from institutional investors.

XBTO’s Diamond Hands BTC, regulated in Bermuda, has achieved annualized returns of around 5% with lower volatility. Through this product we intend to offer a more sophisticated solution to institutions looking for more than just exposure to digital assets.

The maturation of institutional digital asset demand requires sophisticated solutions that go beyond simple exposure. - Javier Rodriguez-Alarcon, chief investment officer and head of digital asset management at XBTO

Other firms have introduced similar products. Hilbert Capital has the Purpose Bitcoin Yield ETF and NEOS has the Bitcoin High Income ETF. These offerings are indicative of a broader wave of interest from the financial sector looking to profit off of Bitcoin’s ability to provide yield.

We have seen growing demand from our wealth management clients for ways to generate yield on their Bitcoin holdings within a properly managed risk framework. - Romain Braud

This positive trend is still influenced by major forces. One is the just-shy-of-panic US debt of $37 trillion, and another is the historic wealth of baby boomers, pegged around $79 trillion. Because baby boomers will be some of the largest adopters of Bitcoin, the demand for regulated and reliable yield products is likely to grow dramatically.