In today’s Crypto for Advisors, Todd Bendell from Amphibian Capital explains the use of bitcoin yield products as a means to enhance bitcoin holdings beyond simply waiting for price rises.
Rich Rines, a former Core DAO developer, also offers insights for Bitcoin developers in the section Ask an Expert.
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The Next Frontier for Bitcoin Holders: Generating BTC-on-BTC Yield
Bitcoin has evolved from being merely a store of value to becoming a crucial asset in institutional portfolios. As bitcoin matures and the infrastructure improves, holders now question how to effectively utilize it without deviating from the Bitcoin ecosystem. This newfound curiosity leads us to BTC-on-BTC yield, an emerging strategy.
Rather than lending BTC on unregulated platforms or chasing high annual percentage yields like BlockFi, today’s institutional alternatives focus on diversified, risk-managed strategies that are entirely in bitcoin.
The Importance of BTC-native Yield While saving dollars is a common practice, BTC’s prevailing narrative has often been to simply hold. This approach is shifting as sovereign wealth funds now adopt BTC, and major exchanges start trading it.
BTC-on-BTC yield merges the ideology of increasing holdings with systematic strategies tailored to generate returns in BTC itself, distinct from merely benefiting from price increases.
Such yield strategies include delta-neutral basis trades, statistical arbitrage, and DeFi yield farming, ensuring accumulation of more BTC over time even in volatile markets.
By adapting to these new resources and emerging strategies, investors can maintain their core BTC positions while pursuing consistent accumulation through active yield strategies—proving that bitcoin is far from passive.
For tips and strategies on maintaining bitcoin’s productive nature, feel free to engage in further discussions and explore more on Crypto for Advisors.
