Sygnum and Starboard Digital Raise Over 750 BTC for BTC Alpha Fund

WHY THIS MATTERS:
As Bitcoin matures into an institutional asset class, investor expectations are shifting beyond simple price exposure toward strategies that can deliver consistent, risk-managed returns. With spot volatility structurally declining and ETF flows introducing new market dynamics, institutions are increasingly seeking ways to make Bitcoin productive rather than passive. Market-neutral and arbitrage-based strategies are emerging as a response to this evolution, offering yield generation without relying on directional bets. This reflects a broader trend in digital assets: the financialisation of crypto through sophisticated portfolio construction, banking-grade custody and capital-efficient structures. As Bitcoin becomes embedded in long-term allocations, demand is rising for institutional frameworks that treat it as a yield-bearing asset rather than purely a speculative one.

Sygnum, a global digital asset banking group, today announced the successful launch and seed-phase completion of the Starboard Sygnum BTC Alpha Fund, which delivered an annualised 8.9% net return in BTC for Q4 2025. 

The fund’s initial performance and rapid capital formation, attracting over 750 BTC from professional and institutional investors in just four months, highlights growing interest in actively managed Bitcoin strategies that can generate yield independent of spot price movements. The fund was launched in October 2025 in partnership with Starboard Digital Strategies with a stated target of 8-10% annual returns in BTC through market-neutral arbitrage trading. 

“As Bitcoin becomes a core portfolio allocation for institutional investors, we’re seeing growing demand for strategies that can generate returns beyond simple price appreciation,” said Markus Hämmerli, who leads the BTC Alpha Fund offering at Sygnum. “The fund’s Q4 performance demonstrates that professional Bitcoin management can deliver meaningful results even when spot markets are flat or declining.”

The Cayman Islands-domiciled fund employs systematic arbitrage strategies to generate returns that are converted into Bitcoin, enabling investors to grow their Bitcoin holdings over time while maintaining full exposure to Bitcoin’s long-term price potential.  The strategy captures pricing dislocations across major crypto markets by leveraging arbitrage opportunities between spot and derivatives instruments, while maintaining a market-neutral exposure that seeks to limit reliance on Bitcoin’s day-to-day price movements.

As spot Bitcoin experiences a structurally declining volatility, even as ETF flows swing sharply, investors are shifting their focus from pure directional calls to generating additional returns that can hold up across different market conditions.

With monthly liquidity and a disciplined risk management framework, the fund is designed for professional and institutional investors seeking quality yield opportunities within an institutional-grade structure and safekeeping of assets off-exchange.

A distinctive feature of the fund is its integration with Sygnum’s broader banking services. Fund shares are eligible for select clients as collateral for USD Lombard Loans, enabling investors to access liquidity for other opportunities without selling their fund positions, a common challenge for long-term Bitcoin holders.

“Generating yield on Bitcoin and still maintaining exposure to its appreciation potential has been a persistent challenge for institutional investors,” said Nikolas Skarlatos of Starboard Digital. “The fund’s early results validate that institutional-grade Bitcoin yield strategies and aims targets to generate 8-10% annual returns across market conditions.”

The BTC Alpha Fund launch aligns with broader institutional adoption of Bitcoin as a strategic portfolio allocation. Recent industry data indicates that 68% of institutional investors have already invested or plan to invest in Bitcoin exchange-traded products, and demand for professionally managed, yield-generating strategies continues to grow.

The fund leverages institutional-grade service providers and is available to qualified and professional investors in approved markets such as Switzerland and Singapore.

FF NEWS TAKE:
This early performance underscores growing appetite for professionally managed Bitcoin yield strategies. The real test will be consistency across market cycles and scalability as capital inflows increase. Watch closely how these strategies perform as volatility compresses further and institutional participation deepens.