After the SEC approved options trading for BlackRock's Bitcoin ETF, discussions about Bitcoin yields reignited.
In a recent podcast, MicroStrategy Chairman Michael Saylor proposed that government-backed U.S. banks could offer USD loans against Bitcoin as collateral, enabling holders to earn yields while retaining their assets.
This strategy positions MicroStrategy, which recently raised $1.01 billion to purchase more Bitcoin, to benefit from increased yields due to its 252,220 BTC holdings.
However, Saifedean Ammous, author of The Bitcoin Standard, expressed skepticism about the sustainability of such lending models, warning they could lead to failures like those of Celsius and BlockFi.
He noted that these systems lack stability without a lender of last resort and depend heavily on the assumption that the U.S. dollar will remain strong. With ongoing discussions about de-dollarization, the future of the dollar is uncertain.
Custodia Bank’s CEO Caitlin Long suggested that lending Bitcoin at a 1:1 ratio is acceptable, but anything above that indicates insolvency risk. MicroStrategy’s stock has significantly outperformed major tech companies and the S&P 500 thanks to Bitcoin adoption.
BitMEX co-founder Arthur Hayes has issued a cautious outlook for Bitcoin and the broader crypto market, predicting a possible short-term downturn as the U.S. government shifts its liquidity strategy.
Bitcoin’s bullish undercurrent continues to strengthen as on-chain data and derivatives market behavior reveal aggressive accumulation from long-term holders and whales.
As institutional adoption of Bitcoin accelerates, U.S. asset management giant Franklin Templeton has issued a cautionary note on the growing trend of crypto-based treasury strategies.
Bitcoin rose 1.78% over the past 24 hours to reach $109,500 at the time of writing, driven by surging institutional inflows into spot ETFs, easing global trade tensions, and strengthening technical momentum.