#PowellRemarks XBTO and Arab Bank Switzerland launch a BTC yield product for institutional clients.
The partnership is part of a broader trend of banks integrating structured BTC yield products into wealth management services.
XBTO, a cryptocurrency investment firm and liquidity provider, has partnered with Arab Bank Switzerland to offer a Bitcoin yield product to the bank's wealth management clients, as part of a growing interest from institutions in BTC yield products.
According to XBTO, the product will apply its “diamond hands” strategy, a proprietary approach used in its Bitcoin (BTC) yield fund. The fund's rule-based strategy involves selling BTC options to earn premiums while seeking accumulation during market downturns. Regulated in Bermuda, the product has reported annualized returns of around 5% with relatively low volatility.
“The maturation of institutional demand for digital assets requires sophisticated solutions that go beyond simple exposure,” said Javier Rodriguez-Alarcón, Chief Investment Officer and Head of Digital Asset Management at XBTO.
“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,” said Romain Braud, Head of Digital Assets at Arab Bank Switzerland.