Laser Digital, Nomura's Crypto Division, Introduces Bitcoin Fund With Yield Generation
Institutional investors can now access returns that go beyond simple, traditional long-only Bitcoin holdings through this new fund offering.
Nomura's cryptocurrency division is introducing a novel Bitcoin investment vehicle that focuses on yield generation, marking another step forward as asset management firms strive to provide institutional clients with returns that extend beyond mere exposure to price movements.
The Bitcoin Diversified Yield Fund (BDYF) is being rolled out by Laser Digital to meet rising market appetite for tokenized funds that prioritize yield generation over "vanilla long-only funds," as stated in an announcement provided to Cointelegraph on Thursday.
The newly launched product differentiates itself from conventional long-only Bitcoin (BTC) funds by aiming to generate income through the implementation of diversified strategies designed to produce yield while preserving Bitcoin exposure, Laser Digital stated.
Laser Digital characterized the product launch as an answer to increasing demand for investment structures that are tokenized and yield-focused.
This new offering expands upon Laser Digital's Bitcoin Adoption Fund from 2023, which offered directional Bitcoin exposure but did not incorporate any additional mechanisms for yield generation.
The actively managed fund will utilize Kaio, a tokenization platform, as its sole tokenization provider, while Komainu, a cryptocurrency custody platform, will function as the primary custodian. Access to the fund will be restricted exclusively to institutional and qualifying accredited investors.
Yield strategies reshape crypto funds
According to Jez Mohideen, Laser Digital's co-founder and CEO, recent turbulence in the market has highlighted investor appetite for strategies designed to pursue returns that operate independently of wider price fluctuations.
Mohideen explained that the new fund will allow Laser Digital to preserve its Bitcoin holdings while taking advantage of the emerging phase of decentralized finance, stating:
"Recent market volatility has shown that yield-bearing, market-neutral funds built on calculated DeFi strategies are the natural evolution of crypto asset management."
According to a Laser Digital spokesperson, the fund seeks to blend Bitcoin exposure with income derived from market-neutral strategies, while pursuing lower volatility and minimal correlation with wider crypto market trends. The firm stressed that this approach is intended to serve as a complement to, not a substitute for, holding Bitcoin directly.
This marks a departure from the fund Laser Digital launched in 2023, which provided no yield generation beyond the appreciation of Bitcoin's spot price.