Sygnum, a Switzerland-based digital asset bank, has announced the launch of BTC Alpha Fund, in collaboration with Starboard Digital and Starmark as AIFM. It aims to cater to the demand from investors wanting to generate a yield on their Bitcoin holdings while still maintaining exposure to the cryptocurrency’s price appreciation.
The launch announcement was made by Sygnum’s official page on X, citing that the fund has already attracted significant interest from professional investors and targets 8-10% annual returns, net of fees, which are paid in Bitcoin.
Features of the new fund
As per the official press release, the BTC Alpha Fund offers a solution for growing Bitcoin holdings through systematic arbitrage trading returns. Markus Hämmerli, who is leading the BTC Alpha Fund offering at Sygnum, stated, “Bitcoin has become a key exposure in modern portfolios, and many of our clients want to stay invested while building their positions further.”
Hämmerli added that the “BTC Alpha Fund helps investors participate in Bitcoin’s price performance while aiming to earn additional Bitcoin through trading returns, all within an institutional-grade framework.”
The Cayman Islands-domiciled fund uses arbitrage trading strategies to generate returns which are then converted into Bitcoin. The fund is made for professional and institutional investors, offering monthly liquidity and a strict risk management framework.
Synum’s play in the fund
A key feature of the fund is its integration with Sygnum’s broader banking services. Shares of the fund can be used as collateral for USD Lombard Loans at Sygnum. This helps in providing investors with a way to access liquidity without selling their fund.
This launch shows Sygnum’s commitment to advancing regulated Bitcoin products, building on its ‘₿itcoin@Sygnum’ initiative from October 2024 and its presence in Lugano’s Plan ₿ HUB.
Sygnum has been working actively in the crypto space, collaborating with different companies like ByBit for safeguarding crypto assets or Chainlink for NAV on-chain.
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