XBTO, a crypto investment firm, has teamed up with Arab Bank Switzerland to offer a Bitcoin yield product for the bank's wealth management clients, reflecting a rising institutional interest in BTC yield solutions. This product utilizes XBTO's proprietary 'diamond-hands' strategy, which involves selling BTC options to earn premiums while accumulating Bitcoin during market downturns. Regulated in Bermuda, it has achieved annualized returns of approximately 5% with low volatility. Javier Rodriguez-Alarcon, XBTO's chief investment officer, noted that the demand for sophisticated digital asset solutions is increasing. Romain Braud from Arab Bank Switzerland highlighted the need for yield generation on Bitcoin holdings within a managed risk framework. Historically, generating yield from Bitcoin was challenging, relying mainly on price appreciation. However, new methods like derivatives and staking are now providing alternative income sources. Despite the potential for income, risks such as impermanent loss and market volatility remain, as noted by OneSafe. Other firms exploring Bitcoin yield products include Hilbert Capital and Coinbase. Read more AI-generated news on: https://app.chaingpt.org/news

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