Swiss digital asset bank Sygnum has introduced the BTC Alpha Fund in partnership with Athens-based Starboard Digital, aiming to provide institutional and professional investors with annual returns of 8-10% in Bitcoin while maintaining full price exposure to BTC. The fund, domiciled in the Cayman Islands, employs arbitrage trading strategies to generate yield, with payouts denominated in Bitcoin and no requirement to sell underlying holdings.
Managed by Starboard Digital, the fund offers monthly liquidity and allows shares to be pledged as collateral for USD Lombard loans through Sygnum, enabling investors to unlock liquidity without divesting Bitcoin assets. Markus Hämmerli, leading the fund at Sygnum, noted, "Bitcoin has become a key exposure in modern portfolios, and many of our clients want to stay invested while building their positions further." Nikolas Skarlatos of Starboard Digital highlighted that this addresses a longstanding challenge for institutions seeking yield without sacrificing appreciation potential.
Background context from Binance Research indicates only 0.8% of Bitcoin's supply is currently deployed in DeFi, suggesting substantial growth opportunities, while Franklin Templeton Digital Assets estimated the Bitcoin yield market could reach $1 trillion. The fund is part of Sygnum's broader Bitcoin-focused initiatives, including its #Bitcoin@Sygnum program and involvement in Lugano's Plan ₿ Hub, with Starboard handling trading and risk management, and Sygnum providing regulated custody and distribution.
