XBTO Collaborates with Arab Bank Switzerland to Launch Bitcoin Yield Product, Indicating Increasing Institutional Demand for Complex Financial Instruments.
XBTO, a company specializing in cryptocurrency liquidation, has announced a strategic partnership with Arab Bank Switzerland to launch a Bitcoin-based yield product for institutional asset management clients. This is a clear sign of the deepening maturity of the digital asset market, reflecting the growing demand from institutional investors for more complex financial products compared to traditional Bitcoin investment methods.
The partnership between XBTO and the reputable Swiss private bank clearly demonstrates the extensive integration between traditional finance and crypto products. This new product, managed under Bermuda's legal framework, will operate based on XBTO's exclusive "diamond-hands" strategy.
This strategy essentially focuses on selling options to collect option fees, while being designed to leverage market correction periods to accumulate more Bitcoin.
According to the announcement, the product has achieved an annual yield of around 5% with low volatility, becoming an attractive option in a context where traditional investment channels are facing challenges in profitability.
The increasing appearance of similar structured financial products is fundamentally changing how institutional investors perceive Bitcoin. Previously, Bitcoin profits were primarily based on long-term price appreciation expectations.
Currently, with the strong development of derivative markets and similar products like staking, Bitcoin is increasingly viewed as an asset that can generate stable cash flow without selling the underlying asset.
Mr. Romain Braud, Head of Digital Assets at Arab Bank Switzerland, confirmed a "clearly increasing demand from asset management clients for yield-generating tools" built on a strict risk management platform.
However, Bitcoin yield products are not without risks, including potential impermanent loss, inherent volatility of the cryptocurrency market, risks from smart contracts, and uncertainties from the evolving legal environment.
Nevertheless, this field is attracting more major players, demonstrating its strong appeal. The partnership between XBTO and Arab Bank Switzerland will directly compete with similar products in the market such as Hilbert Capital, Purpose Bitcoin Yield ETF, or Coinbase Bitcoin Yield Fund – all of which are actively exploring opportunities from the increasingly high demand for Bitcoin yield from institutional investors.
