Bitcoin Holding Institutions Seeking Yield
Institutional interest in Bitcoin is evolving as asset managers and corporate treasuries seek yield opportunities beyond passive holdings. Platforms like Rootstock and Babylon are facilitating this shift, enabling yield generation through Bitcoin-based solutions such as staking and collateralized stablecoin products. Richard Green from Rootstock noted that many institutions want their Bitcoin assets to work harder, reflecting a demand for productive use rather than passive appreciation. However, the yield available—typically between 1-2%—is considered thin compared to other digital asset ecosystems. The practical need to offset holding costs also drives corporate interests. Solutions proposed to generate yield without significant risks are gaining traction among conservative investors, indicating a gradual move towards Bitcoin utilization in yield-generating activities. Despite this interest, challenges remain as institutional demand takes time to manifest due to low returns and psychological hurdles associated with yield expectations.
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