Swiss digital asset banking leader Sygnum has introduced a groundbreaking Bitcoin yield fund targeting institutional investors seeking returns while maintaining BTC price exposure. The BTC Alpha Fund, created with Athens-based Starboard Digital, employs sophisticated arbitrage strategies to deliver 8%-10% annual returns distributed directly in Bitcoin.
Registered in the Cayman Islands, the fund enables professional investors to accumulate additional Bitcoin through arbitrage profits while benefiting from long-term BTC appreciation. Sygnum reports significant institutional interest in this regulated digital asset yield product as demand grows beyond simple Bitcoin holding.
Industry analysts highlight substantial growth potential in Bitcoin DeFi, with Binance research indicating only 0.8% of Bitcoin supply currently utilized in decentralized finance - representing a massive untapped market opportunity previously estimated at $1 trillion by Franklin Templeton Digital Assets.
"Bitcoin represents core portfolio exposure for our clients who want to maintain positions while accumulating additional BTC," stated Markus Hämmerli, Sygnum's BTC Alpha Fund lead.
Enhanced Liquidity Features
The fund offers practical advantages including using shares as collateral for USD Lombard loans at Sygnum, allowing long-term holders to access liquidity without selling cryptocurrency positions. Monthly liquidity options and robust risk management protocols address digital market volatility while providing flexibility.
This launch continues Sygnum's expansion of regulated products bridging traditional finance and cryptocurrency markets, building on their growing suite of institutional-grade digital asset solutions.