A Swiss crypto bank, Sygnum Bank, achieved profitability in the first half of 2024 as Bitcoin ETF & Ethereum ETF approvals in U.S. boosted trading volumes. In the first half of 2024, Sygnum’s crypto spot trading volumes doubled, and its crypto derivatives trading surged by 500%.
The company’s lending business also saw substantial growth, with Lombard loan clients nearly doubling and loan volumes increasing by over 360%. The company credits its success to improved trading features, strategic partnerships, and a team of over 250 professionals.
Martin Burgherr, Chief Client Officer at Sygnum, credited the spike in trading volumes to the launch of spot Bitcoin and Ethereum exchange-traded funds (ETFs).
Martin Burgherr, said, “The approval and launch of Bitcoin and Ethereum ETFs were a watershed moment for the crypto sector this year, leading to a major increase in demand for trusted, regulated exposure to digital assets.”
Sygnum offers several crypto-related exchange-traded products, including the Sygnum Platform Winners Index ETP, which includes Bitcoin, Ether, Solana, Cardano, and Polkadot.
The bank has also seen more clients choosing to stake their Ether through its staking-as-a-service offering, which now represents 42% of all Ether held by its customers. Sygnum notes that staking ETH offers benefits beyond the ETF framework, which currently does not include staking yields.
With valued at $900 million after a $41 million capital raise in January, Sygnum plans to expand into the European market and achieve compliance with the EU’s Markets in Crypto-Assets Regulation by Q1 2025. Although Switzerland is not an EU member, Sygnum has been licensed in Luxembourg since its launch in 2022.
The bank, which also operates an office in Singapore, plans to extend its regulated offerings to the Asia-Pacific region, including Hong Kong, in the coming months.
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