Swiss Bank Sygnum Launches BTC Alpha Fund in collaboration with Starboard Digital to Generate Yield on Bitcoin

Sygnum, a global digital asset banking group, announces the launch of the Starboard Sygnum BTC Alpha Fund in collaboration with Starboard Digital and Starmark as AIFM, with Sygnum providing regulated distribution and banking infrastructure. The fund addresses growing demand from investors seeking to generate yield on their Bitcoin holdings while maintaining full exposure to Bitcoin’s price appreciation.

As Bitcoin has emerged as a major portfolio building block and for many investors their highest value asset, the BTC Alpha Fund offers a solution to grow Bitcoin holdings through systematic arbitrage trading returns. The fund has already generated significant interest from professional investors seeking quality yield opportunities on their Bitcoin holdings. The fund targets 8-10% annual returns net of fees, paid in Bitcoin allowing investors to grow their number of Bitcoin over time.

“Bitcoin has become a key exposure in modern portfolios, and many of our clients want to stay invested while building their positions further,” said Markus Hämmerli, who is leading the BTC Alpha Fund offering at Sygnum. “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 employs arbitrage trading strategies to generate returns that are converted into Bitcoin, effectively growing the number of Bitcoin held by investors. With monthly liquidity and a strict risk management framework, the fund is designed to meet the needs of professional and institutional investors seeking quality yield opportunities in digital assets.

“Generating yield on Bitcoin while maintaining exposure to its appreciation potential has been a key challenge for institutional investors,” said Nikolas Skarlatos of Starboard Digital. “Our partnership with Sygnum delivers one of the few high-quality institutional setups available to grow Bitcoin holdings.”

A key feature of the fund is its integration with Sygnum’s broader banking services. Fund shares will be eligible as collateral for USD Lombard Loans at Sygnum so that investors can access liquidity for other opportunities without selling their fund positions. This addresses a common challenge for long-term Bitcoin holders who may have liquidity needs.

The fund leverages institutional-grade service providers and will be available to qualified and professional investors in eligible markets.

This launch reinforces Sygnum’s commitment to advancing regulated Bitcoin products, building on the bank’s ₿itcoin@Sygnum. initiative announced in October 2024 and its established presence in Lugano’s Plan ₿ HUB.