Previously exclusive Bitcoin yield opportunities such as various delta-neutral strategies are becoming accessible to all Bitcoin holders. These sophisticated financial strategies, once reserved for institutional players and high-net-worth individuals, are now being implemented on-chain on Core’s Bitcoin DeFi platform.

Bitcoin DeFi protocols like BITS and BitFi are bringing high-finance infrastructure directly into the hands of everyday users. These products specifically appeal to Bitcoin holders looking to go beyond simple Bitcoin staking yield in pursuit of enhanced returns. Rather than needing to turn to TradFi or Bitcoin treasury companies for supra-spot exposure, these Bitcoin holders can choose from a suite of on-chain products while engaging in the same tactics.

This development can have profound impacts across the Core ecosystem. Total value locked can increase across the board as both Bitcoin and CORE tokens get locked as part of these strategies.

This creates a virtuous cycle where increased activity generates more transaction fees, which flow back to consensus participants, further enhancing the attractiveness of Bitcoin staking and dual staking strategies.

Bitcoin has increasingly become institutionalized through ETFs, corporate treasuries, and cold storage solutions, leaving retail participants somewhat sidelined with limited ways to actively participate in this growth cycle beyond simple appreciation. These new asset management protocols offer accessible, differentiated, and competitive products specifically designed for yield-seeking retail holders. This yield-based competition introduces a dynamic, participatory layer atop passive Bitcoin holding, fundamentally changing how retail users can interact with their Bitcoin holdings.

BITS, BitFi, and similar protocols are building a new class of on-chain Bitcoin yield products, whether they be on-chain asset management or structured products or another methodology for yield-generation.

Each protocol competes on multiple dimensions including yield generation, risk profile management, transparency, user experience, and liquidity provision. The diversity of options that will emerge from this competition will likely mirror the variety found in traditional mutual funds or ETFs in terms of user-facing offerings, but with the added benefits of transparency, composability, and permissionless access that define DeFi protocols.

This represents a fundamental evolution in how Bitcoin can be utilized as a productive asset while maintaining on-chain transparency and efficiency, creating new opportunities for both individual and institutional Bitcoin holders to participate in the growing Bitcoin-native financial ecosystem.