Swiss digital asset bank Sygnum has launched its ETH Alpha Fund SP, an investment vehicle designed to grow professional investors’ Ether holdings while retaining exposure to ETH price movements. The fund opened to qualified investors in approved markets, including Switzerland, on November 2, 2026, and targets annual net returns of 8% to 10% in ETH after fees.
The strategy combines native Ethereum staking with statistical arbitrage, volatility arbitrage, cross-exchange arbitrage, options premiums, and derivatives funding-rate opportunities. Sygnum describes these trading components as largely market-neutral because their intended returns do not depend primarily on Ethereum prices rising. However, investors remain exposed to ETH price movements because the fund’s performance and payouts are denominated in ETH rather than dollars.
Markus Hämmerli, Sygnum’s head of asset management and the fund’s lead, said: “Institutions that hold ETH for the long term increasingly think in ETH, not dollars.” He explained that the product combines staking with income-generating strategies intended to increase the amount of Ethereum investors hold. Sygnum estimates conventional ETH staking currently generates roughly 2% to 3% annually.
The fund requires a minimum investment of $100,000 or the equivalent in ETH. Subscriptions are monthly with two business days’ notice, while redemptions require 15 calendar days’ notice and are subject to an investor-level redemption gate of up to 10%. Sygnum Protect, the bank’s off-exchange custody service, keeps collateral at the bank while investment managers execute strategies through supported trading venues, including Deribit. The structure aims to reduce exchange-held collateral but does not eliminate trading or counterparty risks. Risks also include derivatives, staking, liquidity, custody and trading-system exposure, with leverage potentially amplifying losses in volatile markets.
The launch follows Sygnum’s Bitcoin Alpha Fund introduced in October 2025, which targets 8% to 10% annual returns in BTC after fees. The new Ethereum fund is managed by Sygnum Asset Management within Sygnum Bank AG’s Investment Solutions department, with Sygnum Bank acting as strategy adviser and custodian.
