Wall Street Lunch: Coinbase Preps For BTC Yield Fund

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The Coinbase Bitcoin Yield Fund launches this week. (0:15) Could tariffs really lower your taxes? (0:56) Goldman is optimistic on dividends. (4:00)

This is an abridged transcript of the podcast.

Coinbase Global’s (NASDAQ:COIN) asset management arm plans to launch a bitcoin yield fund on Thursday. The Coinbase Bitcoin Yield Fund (CBYF) will take a conservative approach to meet growing institutional demand for bitcoin yield, the company said on Monday.

The new fund seeks a 4%-8% net return in bitcoin per year over a market cycle, with investors subscribing and redeeming bitcoin (BTC-USD).

Bitcoin, unlike traditional assets or staked digital assets such as ether and Solana, does not generate yield. Earlier bitcoin yield funds required institutional allocators to take on investment and operational risk.

Rather than move assets out of storage, the Coinbase fund uses third-party custody integrations to trade, which the company says “significantly reduces counterparty risk.”

In the latest tariffs, can revenue from trade levies lower taxes?

President Donald Trump says yes. On Sunday, Trump posted, “When tariffs cut in, many people’s income taxes will be substantially reduced, maybe even completely eliminated. Focus will be on people making less than $200,000 a year.”

UBS disagrees. Chief economist Paul Donovan writes today, “Trade tariffs cannot replace income taxes—to suggest otherwise either raises questions of policy competence or implies a deficit-financed tax cut. Neither is likely to shore up waning faith in the safety of the US dollar.”

He added, Trump’s idea hints at an understanding that low-income households pay trade taxes.

Among active stocks. Domino’s Pizza (DPZ) reported mixed results for the first quarter.

The company reported domestic comparable store sales growth of -0.5% to miss the consensus estimate of +0.3%. International comparable store sales were up +3.7% vs. +1.9% consensus. CEO Russell Weiner said that in the face of a challenging global macroeconomic environment, the company’s strategic pillars are working together to drive sales.

Pony AI (PONY) is rallying after The Wall Street Journal reported the company is planning to start mass production of robotaxis by the middle part of 2025 and sees a path to improved profitability.

Last week, Pony AI introduced new models at the Shanghai Auto Show and unveiled a strategic partnership with Tencent Cloud (OTCPK:TCEHY). The California-based company also highlighted that it can now build its most advanced autonomous driving system for 70% less than before. CTO Lou Tiancheng said costs could be cut enough to bring the robotaxi upstart closer to single-unit breakeven.

London-listed shares of Deliveroo (ODROOF) gained the most since 2021 after the British delivery company disclosed a buyout offer from DoorDash (DASH).

On Friday, Deliveroo said in a filing that it had received a cash offer from DoorDash for £1.80 per share. The deal values the food delivery service at $3.6 billion.

In other news of note. Chagee (CHA) entered the U.S. market over the weekend with a welcoming event at its location at Westfield Century City Mall in Los Angeles. The store will hold its grand opening on May 9, in what will mark a major milestone for the brand, which has already established outlets across China and Southeast Asia, including Thailand, Singapore, and Malaysia.

Shanghai-based Chagee is known for its freshly brewed and milk-based teas, such as peach oolong tea lattes and jasmine green tea lattes. The Los Angeles area location will also feature pastries from local favorite Farmshop and will employ an AI-assisted brewing technique that ensures each cup is prepared in under a minute.

The U.S. launch followed shortly after Chagee’s IPO last week which was priced at $28 per share. Chagee climbed to as high as $41.80 before closing on Friday at $31.11. The IPO generated strong interest despite concerns about an extended U.S.-China trade war.

And in the Wall Street Research Corner. Goldman Sachs remains more optimistic on corporate dividends than what traders are pricing in.

Strategist David Kostin says that Goldman’s dividend forecasts for 2026 and 2027 are 11% and 17% higher, respectively, than current pricing.

The futures market is currently projecting a 4% drop in dividends per share in 2026—a far steeper decline than the 1% median fall seen around historical recessions since World War II. Still, Kostin warned that if hard economic data begins to deteriorate further, recession fears could deepen, pulling dividend expectations down even more.

In the current environment, Kostin said investors will continue favoring companies that return cash to shareholders rather than those prioritizing growth investments.

“This pattern typically occurs when economic growth is slowing or entering recession,” he said, “and we’ve seen it re-emerge in recent months.”