Swiss digital asset bank Sygnum has introduced a new fund offering investors the ability to earn yield on their Bitcoin holdings while maintaining full price exposure.
Key Takeaways:
Sygnum’s BTC Alpha Fund offers 8–10% annual returns in Bitcoin using arbitrage strategies, without selling price exposure. The fund targets institutional investors and allows BTC-based yield with monthly liquidity and collateral options. Managed by Starboard Digital, it taps into the growing demand for institutional-grade Bitcoin DeFi solutions.The BTC Alpha Fund, launched in collaboration with Athens-based Starboard Digital, employs arbitrage trading strategies to target annual returns between 8% and 10%, paid directly in Bitcoin.
The fund is domiciled in the Cayman Islands and is designed for institutional and professional investors. It allows participants to grow their Bitcoin positions by converting trading gains into BTC, rather than fiat.
Sygnum Offers BTC Yield Without Selling Exposure
Sygnum says the strategy appeals to long-term holders seeking yield without reducing their Bitcoin exposure.
“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 heads the BTC Alpha Fund at Sygnum.
As interest in Bitcoin-based income strategies grows, the fund offers an institutional-grade entry into Bitcoin DeFi, a segment that analysts believe remains largely untapped.
Binance Research recently noted that only 0.8% of Bitcoin’s supply is currently deployed in DeFi, suggesting significant upside potential.
Franklin Templeton Digital Assets has previously estimated the Bitcoin yield opportunity could reach $1 trillion.
The fund also brings practical benefits. Shares can be pledged as collateral for USD Lombard loans through Sygnum, enabling investors to unlock liquidity without selling their BTC-based assets.
Monthly liquidity and a defined risk management framework are built into the fund to help navigate crypto market volatility.
Starboard Digital, known for its trading and risk management expertise, will manage the fund, while Starmark acts as the AIFM. Sygnum will provide the regulated banking and distribution infrastructure.
“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.
“This partnership offers one of the few institutional-grade solutions in the space.”
The fund adds to Sygnum’s growing suite of Bitcoin-focused offerings, including its ₿itcoin@Sygnum initiative and involvement in Lugano’s Plan ₿ Hub.
Sygnum Expands Institutional Access to Sui with Custody, Trading, and Lending
In August, Sygnum broadened its support for the Sui blockchain by launching custody, trading, staking, and SUI-backed lending services for institutional clients.
The expansion builds on its July 2025 integration of SUI, and includes off-balance sheet asset structuring to protect client holdings in the event of bankruptcy.
Sygnum’s offering includes institutional-grade spot and derivatives trading, upcoming staking services, and Lombard loans backed by SUI.
The bank is targeting banks, asset managers, and high-net-worth individuals seeking secure, regulated exposure to blockchain ecosystems.
The move strengthens Sygnum’s partnership with the Sui Foundation, which aims to drive institutional adoption of its high-performance blockchain.
Sui, developed by ex-Meta engineers at Mysten Labs, supports DeFi, gaming, and real-world asset tokenization. It’s also active in the BTCfi space.
Sygnum, already offering similar services for tokens like BTC, ETH, and SOL, continues to grow its presence across Europe, Asia, and the Middle East.
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