Sygnum has introduced the BTC Alpha Fund, a new investment instrument designed to generate income on Bitcoin holdings while keeping investors fully exposed to the cryptocurrency’s market swings.
The fund launched on October 1, 2025, and enables institutional and professional investors to enhance their Bitcoin investments through sophisticated arbitrage tactics, without the need to sell or convert their assets.
Structure of the Sygnum Bitcoin Alpha Fund
The BTC Alpha Fund is registered in the Cayman Islands and managed in collaboration with Starboard Digital, an Athens-based digital asset trading business specializing in arbitrage and market-making strategies. The fund aims for net annual Bitcoin returns of 8% to 10%, paid directly in Bitcoin, therefore growing investors’ coin holdings over time.
The fund’s arbitrage tactics capitalize on pricing discrepancies between DeFi and centralized exchanges. These opportunities include cross-exchange spreads and futures market inefficiencies, where low-risk transactions yield consistent gains despite Bitcoin’s price volatility.
Due to the fund’s non-directional approach, gains are expected to be driven primarily by trading efficiency rather than speculative price movements.
Access to Institutional-grade Features
Sygnum’s BTC Alpha Fund has various characteristics designed to appeal to institutional investors. Investors may pledge their fund shares as collateral for Lombard loans in US dollars via Sygnum’s bank offering, allowing them to withdraw liquidity without having to liquidate their Bitcoin investment.
Monthly liquidity windows enable frequent redemptions, providing investors with access to funds, while a strict risk management structure closely monitors trading operations to minimize potential losses in the volatile cryptocurrency market.
The fund’s strategy addresses a critical issue for Bitcoin investors: earning income while maintaining long-term exposure to Bitcoin’s potential for growth. Markus Hämmerli, manager of Sygnum’s BTC Alpha Fund, notes that many investors want to “stay invested while building their positions further,” emphasizing the need to receive dividends without relinquishing ownership of the underlying asset.
Sygnum’s cooperation with Starboard Digital, combined with the fund’s regulatory domicile in the Cayman Islands, enables the creation of an institutional-grade product framework that can manage the complexity of crypto markets while providing attractive returns.
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