Binance Launches BTC Yield Product for Bitcoin Holders Seeking Passive Income

Binance has launched a new product called BTC Yield, letting Bitcoin holders earn extra returns without selling their coins. Available through Binance Earn, the product is built exclusively for users who already hold Bitcoin and cannot be funded using stablecoins or other assets.

How the Product Works

Users deposit Bitcoin and receive an internal position called BTCY, which tracks their share in the strategy. Binance holds the deposited Bitcoin as collateral while selling Bitcoin call options, collecting premiums from buyers betting on price rallies. Most of those premiums get shared back with users.

Two Ways Users Can Earn

A portion of the collected premiums converts to Bitcoin and pays out to users’ spot accounts weekly. The remaining premiums stay inside the strategy, gradually raising the value of each BTCY unit over time, meaning users receive more Bitcoin when they eventually redeem their position.

Binance Simplifies a Complex Strategy

Binance’s head of exchange and trading, Shunyet Jan, said covered call strategies have traditionally been difficult for retail users to access directly, and the new product aims to simplify that process for Bitcoin holders seeking income without active trading. The launch follows a similar move by BlackRock, which recently introduced a Bitcoin income ETF using the same covered-call approach.

Costs and Risks Involved

Binance takes a 15% cut of gross option premiums before calculating user yield, and redemption fees apply. The product offers no principal protection, weekly payouts aren’t guaranteed, and returns may lag behind simply holding Bitcoin during strong bull markets.