TLDR:
- Sygnum’s BTC Alpha Fund targets 8-10% yearly returns in Bitcoin through arbitrage trading strategies.
- Fund shares can be used as collateral for Lombard Loans at Sygnum, providing liquidity without selling Bitcoin.
- Monthly liquidity and risk management make the BTC Alpha Fund accessible to professional and institutional investors.
- Investors maintain Bitcoin price exposure while aiming to grow holdings in BTC through systematic yield strategies.
Bitcoin holders have long faced a trade-off between staying exposed to price movements and finding ways to grow holdings. That balance is now shifting as Swiss bank Sygnum introduces a structured fund aimed directly at this challenge.
The new product promises targeted returns through arbitrage strategies while keeping investors tied to Bitcoin’s price curve.
Institutional backing and regulated banking infrastructure strengthen its setup, offering more than just a yield opportunity. The move reflects how traditional banks are bringing structured crypto products closer to professional markets.
Sygnum BTC Alpha Fund Targets Bitcoin Yield Growth
On October 1, 2025, Sygnum Bank confirmed the launch of its BTC Alpha Fund with Starboard Digital, as reported in its announcement. The fund is designed for professional and institutional investors looking to grow Bitcoin holdings while maintaining exposure to market price changes.
According to the bank, the fund employs arbitrage trading strategies that convert trading returns into Bitcoin. This allows participants to increase their BTC holdings over time instead of just holding static balances. Targeted annual returns are set at 8-10 percent net of fees, with payouts made directly in Bitcoin.
Sygnum’s Markus Hämmerli, who leads the initiative, explained that clients want exposure to Bitcoin while also growing their holdings. The BTC Alpha Fund was developed as a direct response to this demand. With its institutional framework, the fund intends to give structured access to yield opportunities on Bitcoin that are otherwise difficult to find.
The product is domiciled in the Cayman Islands and designed under strict risk management protocols. Monthly liquidity ensures investors are not locked in for long cycles, providing flexibility while engaging with BTC’s growth potential.
Banking Integration and Liquidity Options
A core feature of the BTC Alpha Fund is its integration with Sygnum’s broader banking services. Investors will be able to use fund shares as collateral for Lombard Loans at Sygnum, giving them access to liquidity without selling their Bitcoin exposure.
This setup addresses a common issue faced by long-term holders who need access to cash but want to keep their BTC positions intact. By pledging fund shares, clients gain liquidity while maintaining exposure to future price appreciation.
Nikolas Skarlatos of Starboard Digital stated that generating yield while preserving exposure has been a key challenge for institutional investors. The partnership with Sygnum offers one of the few regulated structures that meets these needs in today’s market.
The launch builds on Sygnum’s earlier Bitcoin-focused initiatives, including its ₿itcoin@Sygnum program introduced in October 2024. With this new fund, the bank continues positioning itself as a regulated gateway for crypto banking solutions in Europe and beyond.
