Institutional investors are increasingly favoring traditional finance strategies for Bitcoin yield, according to Thomas Chaffee, co-founder of GlobalStake. These investors are moving away from high-risk DeFi and smart contract approaches, opting instead for fully collateralized, market-neutral strategies. This shift is driven by a desire for more familiar deployment methods with robust compliance and risk control systems. Chaffee noted that past concerns over smart contract risks, leverage, and opaque strategies made BTC yield products less attractive to institutional investors. However, as infrastructure improves, hedge funds and financial departments are showing renewed interest. Richard Green, head of Rootstock Institutional, added that Bitcoin holders are keen to see their assets generate returns, further fueling this trend.