TLDR
- Laser Digital launches the Bitcoin Diversified Yield Fund (BDYF), combining Bitcoin exposure with market-neutral strategies.
- The fund is the world’s first natively tokenized Bitcoin yield fund, designed for institutional and accredited investors.
- BDYF uses strategies like arbitrage, lending, and options to generate returns while minimizing risk.
- KAIO provides tokenization, and Komainu serves as the custodian, ensuring regulatory compliance.
- The fund utilizes decentralized finance (DeFi) strategies to offer sustainable yields with lower exposure to market fluctuations.
Laser Digital Asset Management, a division of Nomura’s digital assets subsidiary, has launched an upgraded Bitcoin Diversified Yield Fund (BDYF). The new fund combines Bitcoin exposure with diversified market-neutral strategies to generate additional returns. It is designed to be the world’s first natively tokenized Bitcoin yield fund, aimed at institutional and eligible accredited investors.
Key Features of the Bitcoin Diversified Yield Fund
The Bitcoin Diversified Yield Fund (BDYF) targets excess returns alongside Bitcoin’s performance through various income-generating strategies. These include market-neutral arbitrage, lending, and options, which aim to provide steady yields while maintaining Bitcoin exposure.
The fund also combines long-term Bitcoin holdings with diversified strategies to minimize risk. The fund is natively tokenized, a first in the industry, and will be custodied by Komainu, a regulated custodian.
KAIO will serve as the exclusive tokenization provider for the fund, ensuring that it operates within regulatory guidelines. This structure sets it apart from other Bitcoin investment products, offering a more modern approach to yield generation in the crypto space.
A Shift Toward DeFi and Sustainable Yield
Laser Digital’s updated Bitcoin fund draws from decentralized finance (DeFi) strategies to offer sustainable yield opportunities. These strategies aim to minimize risk while providing returns beyond Bitcoin’s price movements.
The focus on market-neutral strategies, which reduce exposure to market fluctuations, makes the fund appealing to investors looking for more stable returns in the crypto market. Jez Mohideen, Co-founder and CEO of Laser Digital, commented on the market conditions and the fund’s purpose.
He noted that the recent volatility in the market has demonstrated the potential of DeFi strategies in the crypto asset management space. The Bitcoin Diversified Yield Fund is one of several offered by Laser Digital Asset Management, alongside the Laser Digital Carry Fund (LCF) and the Multi-Strategy Fund (MSF).