Maple Finance launches Bitcoin yield product with 4% APY

Maple Finance (CRYPTO:SYRUP) has introduced a new derivatives product aimed at institutional investors seeking exposure to Bitcoin (CRYPTO:BTC).

This offering allows investors to purchase Bitcoin call options using yield generated from collateralised crypto loans.

With a minimum investment of 100,000 USD Coin, the product promises downside protection against Bitcoin's underperformance.

It features a floor annual percentage yield (APY) of 4%, with the potential to reach a maximum APY of 33%.

The launch comes amid growing demand for structured crypto products that minimise risk while providing high return potential.

Maple's new offering will compete with similar products from various financial institutions, including the National Bank of Bahrain and Crypto.com's platform for U.S. institutional investors.

Since 2024, there has been an increase in structured crypto products designed for institutional clients, driven by improved regulatory clarity and a broader acceptance of digital assets as viable investment options.

Lucas Kiely, chief investment officer for Yield App, noted that seasoned investors are looking for assurances that their investments won’t suffer significant losses, referencing past market disruptions like the collapses of FTX (CRYPTO:FTT) and Celsius Network (CRYPTO:CEL).

Bitcoin ETFs have also seen substantial interest, attracting over $39.9 billion in net inflows since their introduction on Wall Street in January 2024.

Maple Finance previously launched a direct crypto lending program in June 2023 to fill gaps left by other firms' failures.

The Bitcoin loan market is projected to grow significantly, with an estimated compound annual growth rate of 26.4% until 2030, increasing from $8.6 billion to $45 billion.

At the time of reporting, the Bitcoin (BTC) price was $102,306.