In today’s crypto for advisors, Amphibian Capital’s Todd Bendell classifies Bitcoin leisure products as a strategy to grow Bitcoin Holding beyond price valuations.
Next, the first Core DAO developer, Rich Rines, will provide guidance to Bitcoin developers with Ask Appenter.
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Bitcoin was never intended to sit idle.
For over a decade, Bitcoin has served as a digital store of value, a hedge against financial decline and, more recently, a core allocation in the institutional portfolio. As assets mature and infrastructure improve, long-term holders are asking new questions. How can I make Bitcoin work without leaving the Bitcoin ecosystem?
The answer lies in BTC-on-BTC yields, a category of growing but unused strategies.
Let’s be clear. This is not about lending BTC on unregulated platforms or chasing Blockfi’s high annual rate (APY). That playbook collapsed under the weight of counterparty risk and opacity. What has emerged over the past two years is a more institutional alternative. All derived from Bitcoin, diversified risk-managed access to systematic arbitrages and quantitative strategies.
Why is BTC-NATIVE yield important?
With most assets, it’s only natural that money should work for you. We don’t hold the dollar under the mattress or get thrust into the thumb drive. I’ll invest. However, in the world of Bitcoin, the dominant story has long been “hold and way.”
That idea makes sense when Bitcoin was fighting for legitimacy. However, in today’s environment, long-term holders need better tools as BTC is adopted by sovereign wealth funds and traded on major exchanges.
BTC-ON-BTC IRVEG solves this. It coincides with the spirit of accumulating more BTC, but does so through institutional grade strategies aimed at generating returns not only in BTC but also in BTC. That distinction is important.
Cold storage is not a strategy
There is also a myth that simply keeping Bitcoin in cold storage is the safest option. The phrase “not your key, not your coin” has become a doctrine, but it deserves a second look.
The reality is that cold storage carries its own risks. Human error, hardware failure, loss of keys, and in many cases, inability to generate any yield. Meanwhile, professional custodians, who are regulated, insurance and audited, are currently the standard infrastructure providers for digital asset management.
For allocators managing material BTC positions, yield-generating custody is not a trade-off. It’s an upgrade.
How these strategies work
BTC Native yield opportunities today have settled in BTC, from delta-neutral basic transactions and statistical arbitration to agriculture and machine learning-driven Quant executions.
Returns are calculated and distributed by type. The purpose is simple. It accumulates more BTC over time without relying solely on price increases.
By assigning a diverse combination of strategy and managers, investors can mitigate the risk of single strategies and single managers while pursuing consistent BTC growth.
Why BTC-ON BTC yields are timely
At present, some forces are converging:
Volatility is back. Major liquidation events, such as the $10 billion flash in February, create dislocations that can be leveraged by sophisticated funds.
Our infrastructure is stronger than ever. The storage, execution, and risk tools have matured significantly since the last cycle.
Institutional interests are reality. The ETF has opened floodgates, but most of the capital is still not short of and has not been deployed.
In short, Bitcoin is growing. The question is whether the strategies around it will grow with it.
I’ll reconsider the hadling
BTC-On-BTC yield and long-term holdings are not mutually exclusive. Allocators can continue to hold the core BTC position while pursuing steady accumulation using aggressive strategies.
That requires moving beyond the cold storage saying and exploring yield strategies that reflect today’s market sophistication. With proper risk control, BTC-Native yields provide a practical path to accumulating more BTC without waiving core principles.
The bottom line means that Bitcoin doesn’t have to sit on the sidelines. It can move with the market – and grow with it.
For allocators thinking in decades, BTC-On-BTC yields open the door to a more productive Bitcoin strategy.
-Management of Amphibian Capital’s General Partners, Todd Bendell
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Q. What is the best way to match early developer incentives to long-term protocol values?
A. The key is not short-term speculation, but rewarding real users with the real product market fit. It starts with building close relationships and solving real community problems. From there, it is to cultivate an ecosystem that “eats what you kill.” There, the builders who ship the products they use will have real economic benefits, not just points, grants, or temporary incentives. When compensation is made by developers to users, long-term alignment handles itself.
Q. How can developers filter signal over noise when they’re just starting out with Crypto?
A. It’s not just chasing the hot stuff – look for something that’s still important in 5-10 years. This is one of the main reasons why Bitcoin remains a compelling foundation for builders. It fits dedicated users, immeasurable value, and a clear product market. Instead of short-term token price actions, developers should focus on actual usage and demand. If you’re building something that people keep involved in because it’s useful – not because it’s a season of burning yields, you’re already filtering the signal from the noise.
Q. What lessons from Bitcoin’s design philosophy have not been fully utilized?
A. Bitcoin does not because it does the most, but because it does one thing more than anyone else. Product Market Fit as Digital Gold is Crypto’s most proven use case, but it is still underestimated. Too many people forget that simplicity in actual utility wins. Built around Bitcoin and expanding its utility without compromising its foundation is one of the most underrated opportunities in today’s space.
– Richline, first contributor, Core Dao
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