Swiss Bank Sygnum Raises 750 BTC for Innovative Bitcoin Fund

TLDR

• Sygnum Bank raised over 750 BTC, valued at approximately $65 million, for its BTC Alpha Fund in the seed fundraising phase.
• The BTC Alpha Fund launched in October 2025 with a partnership between Sygnum and Athens-based trading firm Starboard Digital.
• The fund successfully completed its initial capital raise within four months, attracting strong interest from institutional investors.
• The fund delivered an 8.9% annualized net return in its first quarter, meeting its targeted return range of 8% to 10%.
• The BTC Alpha Fund uses systematic arbitrage strategies to generate returns by exploiting pricing inefficiencies across various trading venues.

Swiss digital asset bank Sygnum has raised more than 750 bitcoin, valued at approximately $65 million, for its BTC Alpha Fund. The fund, launched in October 2025, aims to generate income while maintaining exposure to bitcoin’s long-term price growth. The fund’s first-quarter performance has exceeded expectations, showcasing the potential of professional bitcoin management.

BTC Alpha Fund Meets Initial Capital Raise Target

Sygnum launched the BTC Alpha Fund in partnership with Athens-based trading firm Starboard Digital. The fund completed its seed funding round in just four months, successfully raising over 750 BTC. The strong investor response highlights growing interest in institutional-grade cryptocurrency strategies that go beyond simple buy-and-hold approaches.

According to Markus Hämmerli, head of the BTC Alpha Fund at Sygnum, the fund’s early performance is encouraging. “Our initial results demonstrate that bitcoin management can produce meaningful returns even when the market remains flat or declines,” Hämmerli said. This statement reflects the fund’s ability to thrive in a relatively subdued bitcoin market.

Sygnum’s Strategy for Generating Returns

The BTC Alpha Fund employs systematic arbitrage strategies to generate returns. These strategies capitalize on pricing inefficiencies between centralized exchanges and various instruments like futures contracts, options, and spot markets. The fund aims to deliver 8-10% annual returns by exploiting temporary dislocations rather than relying solely on bitcoin price appreciation.

All profits generated are converted into bitcoin and distributed to investors. This allows investors to accumulate more bitcoin over time, without reducing their exposure to the asset’s long-term potential. The strategy reflects a market-neutral approach, which aims to generate consistent returns regardless of short-term price fluctuations.

Institutional Interest in Bitcoin Funds Grows

The success of Sygnum’s BTC Alpha Fund reflects broader trends in the institutional cryptocurrency landscape. As regulatory clarity in markets like Switzerland and Singapore increases, asset managers are increasingly seeking sophisticated strategies for digital assets. The BTC Alpha Fund, which targets professional and institutional investors, offers a compelling option for those seeking income generation without sacrificing exposure to bitcoin’s price appreciation.

The fund also offers a unique feature for investors. Shares in the BTC Alpha Fund can be used as collateral for dollar-denominated Lombard loans through Sygnum. This provides investors with the flexibility to unlock liquidity without liquidating their bitcoin holdings.

The BTC Alpha Fund operates with monthly redemption windows, ensuring liquidity while maintaining strict risk management protocols. The fund’s infrastructure is built to meet institutional standards, with KPMG acting as the auditor and NAV Consulting as the administrator.

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