XBTO, Arab Bank Switzerland to debut BTC production product

crypto investment firm and liquidity provider XBTO partnered with Swiss Arab Bank to provide Bitcoin production products to the bank’s wealth management clients, part of the growing appetite of BTC earnings products institutions.

According to XBTO, the product will adopt its “diamond hand” strategy, a proprietary method used in the company’s Bitcoin (BTC) earnings fund. The fund’s rule strategy involves selling BTC options to earn premiums while seeking accumulation during a period of market decline. The product is regulated in Bermuda and reports an annual growth rate of about 5% and is relatively low volatility.

“The maturity of institutional digital asset needs requires sophisticated solutions,” said Javier Rodriguez-Alarcon, Chief Investment Officer and Head of Digital Asset Management at XBTO.

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“We have seen growing demand from wealth management clients for ways in which their bitcoin holdings are generated within the framework of properly managed risk,” said Romain Braud, head of digital assets at the Swiss Arab Bank Bank.

For a long time, yields on Bitcoin have been generated cannot be achieved because most returns rely solely on price appreciation. However, new mechanisms such as derivatives and pile-based models now provide holders with alternative sources of revenue.

SOLV Protocol CEO Ryan Chow recently said at the Token2049 conference that in the past few years, institutions’ interest in Bitcoin earnings products has increased exponentially, allowing institutions to generate yields without selling BTC.

Related: This is what Bitcoin did when the U.S. added 37 tons of debt

Risks and other BTC production products

While Bitcoin production products appear to be tools to build revenue streams, they also pose risks, Onesafe says. These risks include impermanent losses, lack of regulatory clarity, market volatility, and issues in smart contracts.

Some companies have also invested in Bitcoin production, with the purpose of Bitcoin production ETFs and NEOS betting on Bitcoin production products through their Bitcoin high-income ETFs, including Hilbert Capital. Coinbase also launched its Coinbase Bitcoin Income Fund in April 2025.

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