Quick Breakdown
- Over 750 BTC raised in four months highlights strong institutional demand
- Fund delivered 8.9% annualised BTC returns in Q4 2025 via market-neutral arbitrage
- Investors can access liquidity via Lombard loans without selling BTC exposure
Digital asset banking group Sygnum has completed the seed phase of its Starboard Sygnum BTC Alpha Fund, attracting more than 750 BTC from professional and institutional investors within its first four months.
According to the firm, the strong inflows highlight growing institutional appetite for actively managed Bitcoin strategies that can generate yield regardless of short-term price movements. The fund is designed to grow investors’ Bitcoin holdings over time while preserving full exposure to BTC’s long-term upside.
📣 News: Sygnum and Starboard Digital raise over 750 BTC for BTC Alpha Fund
▪️ Over 750 BTC raised from professional investors in first four months, validating institutional demand for yield-generating Bitcoin strategies
▪️ First regulated bank globally to offer market-neutral… pic.twitter.com/1PTHym83RW— Sygnum Bank (@sygnumofficial) January 29, 2026
Launched in October 2025, the fund targets 8%–10% annual returns in BTC through market-neutral arbitrage strategies and has already delivered an annualised net return of 8.9% in BTC in Q4 2025, Sygnum said.
Market-neutral Bitcoin yield gains institutional traction
The BTC Alpha Fund captures pricing inefficiencies across major crypto markets by exploiting arbitrage opportunities between spot and derivatives instruments. This approach keeps the strategy largely insulated from Bitcoin’s day-to-day price volatility.
Qualified professional investors in approved jurisdictions, including Switzerland and Singapore, can access the fund, which uses institutional-grade service providers and keeps assets off-exchange. The structure also offers monthly liquidity, a feature often sought by large allocators.
Nikolas Skarlatos of Starboard Digital Strategies noted that generating yield while retaining exposure to Bitcoin’s appreciation has long been a challenge for institutional investors, a gap the fund aims to address.
Banking integration and growing institutional demand
A key differentiator is the fund’s integration with Sygnum’s banking services. Select clients can use fund shares as collateral for USD Lombard loans, unlocking liquidity without selling their Bitcoin exposure.
Sygnum pointed to industry data showing that 68% of institutional investors have already invested in, or plan to invest in, Bitcoin exchange-traded products, a trend now extending toward professionally managed, yield-generating strategies.
Meanwhile, Sygnum Bank partnered with Bitcoin lending startup Debifi in October 2025 to introduce MultiSYG, a non-custodial crypto loan platform that gives borrowers shared control over their Bitcoin (BTC) collateral.
If you would like to read more articles like this, visit DeFi Planet and follow us on Twitter, LinkedIn, Facebook, Instagram, and CoinMarketCap Community.
Take control of your crypto portfolio with MARKETS PRO, DeFi Planet’s suite of analytics tools.”
