TLDR
- Sygnum’s BTC Alpha Fund: 8–10% Bitcoin yield with full BTC exposure.
- New BTC Alpha Fund boosts Bitcoin holdings via arbitrage, not selling.
- Earn Bitcoin yield without exiting BTC—Sygnum’s fund targets 8–10%.
- Institutional Bitcoin yield fund promises growth with monthly liquidity.
- Sygnum, Starboard launch BTC fund offering stable returns in Bitcoin.
Swiss digital asset bank Sygnum has introduced a new Bitcoin yield fund targeting institutional clients. The BTC Alpha Fund aims to deliver returns without reducing exposure to Bitcoin’s price. It focuses on arbitrage strategies to generate annual returns of 8%-10 %, paid directly in Bitcoin.
BTC Alpha Fund Offers Yield Without Selling BTC
Sygnum unveiled the BTC Alpha Fund in collaboration with Starboard Digital, a trading firm based in Athens. The Bitcoin yield fund is structured to grow its Bitcoin holdings through arbitrage, rather than converting profits to fiat currency. It allows participants to maintain full BTC exposure while receiving returns in the same asset.
The Bitcoin yield fund is domiciled in the Cayman Islands and is designed for professional and institutional participants. Through this setup, Sygnum targets long-term holders seeking stable returns without having to sell down their crypto. The structure also provides monthly liquidity and strict risk controls, offering greater flexibility.
Starboard Digital manages the trading strategies while Sygnum handles custody and regulatory infrastructure. Both firms highlight the institutional-grade framework built to meet high compliance standards. The Bitcoin yield fund marks a notable step toward regulated yield-generating options in the crypto space.
Market Demand for Yield-Generating Bitcoin Products Grows
Rising demand for income-generating crypto products has driven Sygnum to develop this Bitcoin yield fund. With Bitcoin now viewed as a strategic portfolio asset, many want to grow their holdings without exiting the market. This fund addresses that need by employing arbitrage strategies that convert returns into more Bitcoin.
Sygnum reports strong early interest in the product, particularly from clients already familiar with digital assets. These participants are now looking beyond passive holding, exploring structured methods to generate additional Bitcoin. The Bitcoin yield fund provides that path while keeping exposure intact.
Participants also benefit from being able to pledge fund shares as collateral for USD loans from Lombard. This offers an alternative source of liquidity without selling their Bitcoin positions. It creates more financial flexibility while reinforcing commitment to long-term BTC growth.
Institutional-Grade Entry Into Untapped Bitcoin DeFi Space
Sygnum’s Bitcoin yield fund also positions itself in the emerging Bitcoin DeFi space. According to recent research, only 0.8% of Bitcoin supply is currently active in DeFi markets. Analysts, including those at Franklin Templeton, estimate this could become a trillion-dollar opportunity.
The BTC Alpha Fund offers a regulated bridge for institutions to access this opportunity. By using arbitrage instead of lending, the fund avoids some common DeFi risks such as counterparty exposure. This strategy mitigates vulnerabilities similar to those observed in failed platforms, such as Celsius and BlockFi.
The launch follows Sygnum’s broader expansion into digital asset services, including support for newer blockchains such as Sui. The bank is enhancing its reputation as a regulated player connecting traditional finance with crypto innovations. The Bitcoin yield fund adds a new layer to its institutional offerings, supporting secure, yield-focused BTC strategies.
