Opinion: Institutional investors prefer traditional finance-like BTC yield strategies and avoid chasing high risks

BTC1,76%

Odaily Planet Daily reports that Thomas Chaffee, co-founder of GlobalStake, stated that institutional investors’ attitude towards BTC returns is shifting. They are no longer seeking higher risk but are instead looking for return methods similar to traditional finance (TradFi). Currently, fully collateralized and market-neutral strategies are replacing DeFi or smart contracts, reigniting institutional investors’ interest. Thomas Chaffee pointed out that in the past, due to risks associated with smart contracts, leverage, and opaque strategies, institutional investors believed that the risk-reward ratio of BTC yield products was unreasonable. As infrastructure evolves, hedge funds and financial departments are beginning to favor deployment methods they are familiar with, which have compliance and risk control systems in place. Richard Green, head of Rootstock Institutional, also said that investors holding BTC increasingly hope their assets can generate returns. (CoinDesk)

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