Swiss digital asset bank Sygnum has launched the BTC Alpha Fund in collaboration with Starboard Digital and Starmark as AIFM, offering professional investors the ability to generate yield on their Bitcoin holdings while maintaining full price exposure.
The Cayman Islands-domiciled fund employs arbitrage trading strategies to produce returns, which are automatically converted into Bitcoin, effectively increasing investors’ Bitcoin balances over time. The fund targets 8–10% annual returns net of fees, paid in Bitcoin, and offers monthly liquidity with a robust risk management framework.
A key feature of the fund is that its shares are eligible as collateral for USD Lombard Loans at Sygnum, allowing investors to access liquidity without selling their Bitcoin positions. This integration addresses a common challenge for long-term Bitcoin holders.
Markus Hämmerli, leading the BTC Alpha Fund at Sygnum, said: “The BTC Alpha Fund allows clients to participate in Bitcoin’s price performance while earning additional Bitcoin in a fully institutional-grade setup.”
Nikolas Skarlatos of Starboard Digital added: “Generating yield on Bitcoin without reducing exposure has been a challenge for institutional investors; our partnership with Sygnum delivers one of the few high-quality solutions available.”
The launch reinforces Sygnum’s commitment to regulated Bitcoin products and builds on the bank’s existing initiatives, including the ₿itcoin@Sygnum program and its presence in Lugano’s Plan ₿ HUB.