Key takeawaysThough Bitcoin doesn’t support native staking, holders can earn yield through centralized lending platforms, Wrapped Bitcoin (WBTC) on Ethereum, and Bitcoin-related networks like Babylon and Stacks.
Coinbase Bitcoin Yield Fund (CBYF) ExplainedCoinbase Asset Management has launched the Coinbase Bitcoin Yield Fund (CBYF) on May 1, aiming to deliver sustainable Bitcoin-denominated returns for institutional investors outside the US. The fund uses a conservative cash-and-carry arbitrage strategy, capitalizing on price gaps between spot and futures markets, while steering clear of high-risk tactics like leveraged loans or call selling. Targeting annual net returns of 4–8% in BTC, CBYF offers a safer alternative for earning yield on Bitcoin — an asset that lacks native staking options unlike other cryptocurrencies.
This article explores how to earn yield on BTC, the risks involved and the technological advancements enabling these opportunities, all without altering Bitcoin’s core protocol.Staking vs.miningStaking and mining are two distinct consensus mechanisms used to secure blockchain networks and validate transactions. Staking is central to PoS blockchains like Ethereum and Solana.
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Author / Journalist: Cointelegraph by Dilip Kumar Patairya
The story "Can you stake Bitcoin (BTC)? Here’s what you need to know" has 1059 words across 66 sentences, which will take approximately 5 - 9 minutes for the average person to read.
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