Two Prime and Figment Join Forces to Boost Bitcoin Returns for Institutional Investors

US investment firm Two Prime has partnered with staking infrastructure provider Figment to provide institutional clients with access to cryptocurrency income opportunities, highlighting a growing trend among institutional investors towards blockchain-based income strategies.

The partnership will give Two Prime's institutional clients access to income strategies on Bitcoin and more than 40 other digital asset protocols, including Ethereum, Solana, Avalanche and Hyperliquid, the companies announced Tuesday.

Two Prime, a cryptocurrency investment advisor registered with the U.S. Securities and Exchange Commission, has approximately $1.75 billion in assets under management and is one of the industry's largest Bitcoin lending providers.

In July, Bitcoin mining company MARA Holdings acquired a minority stake in Two Prime, significantly increasing the amount of BTC the company manages on its behalf.

Several blockchain companies are turning to Bitcoin yield in an effort to unlock the underutilized potential of the $2.3 trillion asset. Solv Protocol (SOLV) has introduced a structured storage system designed to generate Bitcoin yield through a combination of decentralized and traditional financial strategies.

Bitcoin DeFi startup Build on Bitcoin (BOB) has raised $21 million to further expand Bitcoin income opportunities through hybrid models.

Coinbase also entered the market with its new Bitcoin Yield Fund, which is aimed at investors outside the U.S. and offers yields of up to 8%. The exchange said the fund was created to meet growing institutional demand for Bitcoin yields.

Institutional Adoption Drives Growing Demand for Bitcoin Yields

Bitcoin's high historical returns are pushing more investors toward income strategies that generate profits from passive assets.

As hedge funds, family offices, and asset managers move into Bitcoin, they are increasingly looking for investment opportunities that also provide predictable returns. Unlike the diamond-fingered crypto enthusiasts, institutional investors view Bitcoin as part of a diversified portfolio, where returns are a desired or expected component.

Bitcoin Price Increases Over Quarter. Source: CoinGlass

Javier Rodriguez-Alarcon, chief investment officer at digital asset management firm XBTO, said in June that Bitcoin's emergence as an asset class requires complex decisions that go beyond simple investing.

Rodriguez-Alarcon's firm, in partnership with Arab Bank Switzerland, offers asset management clients a product based on bitcoin returns. It generates income by selling bitcoin options and accumulating additional assets during market downturns.

Bitcoin income strategies could further develop as more corporations add the asset to their balance sheets. Public and private companies collectively hold about 1.509 million BTC, according to industry analysts.

Government and private companies have purchased millions of BTC. Source: BitcoinTreasuries.NET