Swiss digital asset banking group Sygnum Bank, in collaboration with Athens-based Starboard Digital Strategies, has successfully completed the seed funding phase for its Starboard Sygnum BTC Alpha Fund, raising over 750 Bitcoin (BTC) from professional and institutional investors. The capital was accumulated within the first four months of the fund's operation, signaling robust institutional demand for sophisticated Bitcoin investment vehicles.
The fund, which launched in October 2025, is designed as a market-neutral strategy that aims to generate yield independent of Bitcoin's spot price movements. It employs arbitrage trading strategies between spot and derivatives instruments across major crypto markets. The stated target upon launch was to deliver annual returns between 8% and 10%, paid directly in Bitcoin.
According to a press release, the fund has already demonstrated performance, delivering an annualized net return of 8.9% in BTC for the fourth quarter of 2025. Markus Hämmerli, head of the BTC Alpha Fund, stated, "the fund’s Q4 performance demonstrates that professional Bitcoin management can deliver meaningful results even when spot markets are flat or declining."
The fund is integrated with Sygnum's banking services, allowing select qualified clients in approved markets like Switzerland and Singapore to use their fund shares as collateral for USD Lombard Loans. This feature provides liquidity without requiring investors to sell their Bitcoin positions, addressing a challenge for long-term holders.
Nikolas Skarlatos of Starboard Digital Strategies commented on the fund's purpose: "generating yield on Bitcoin and still maintaining exposure to its appreciation potential has been a persistent challenge for institutional investors." The initiative reflects a broader trend where investors are shifting from pure directional bets on price to strategies that can generate returns across different market conditions.
Sygnum Bank, which holds both a Swiss banking license and a capital markets services license in Singapore, operates within the clear regulatory frameworks provided by Swiss FINMA and the EU's MiCA regulation. The bank's move is seen as part of a maturation in institutional crypto investment, progressing from high-net-worth individuals to fully licensed banks offering proprietary products.
