Swiss Bank Sygnum Bets on BTC Growth With Starboard Digital Yield Fund

Sygnum launches the BTC Alpha Fund, targeting 8%-10% annual returns through arbitrage, paid in Bitcoin, for institutional investors.

 

Swiss digital asset bank Sygnum has launched the BTC Alpha Fund in collaboration with Starboard Digital. This new fund offers institutional investors a chance to earn yield on Bitcoin while keeping full exposure to its price movements. 

The fund uses arbitrage strategies to target annual returns of 8%-10%, paid directly in Bitcoin. This move highlights Sygnum’s commitment to providing institutional-grade products in the growing Bitcoin DeFi space.

Targeting Institutional Investors with Bitcoin Yield

The BTC Alpha Fund is specifically designed for institutional and professional investors. 

Sygnum aims to provide a sophisticated solution for those who want to generate returns without reducing their Bitcoin exposure. By using arbitrage trading strategies, the fund delivers returns while participants remain fully invested in Bitcoin’s price growth.

The fund is domiciled in the Cayman Islands and offers monthly liquidity options. This gives investors more flexibility to manage their assets and access their funds. 

By focusing on institutional-grade products, Sygnum aims to bring traditional finance closer to the digital asset world. This offering meets the increasing demand for advanced Bitcoin yield solutions.

Bitcoin DeFi and Growing Market Potential

The BTC Alpha Fund comes at a time when the Bitcoin DeFi sector is expanding. Recent research shows that only a small portion of Bitcoin is used in decentralized finance. This suggests a massive untapped market for Bitcoin-based income strategies.

By partnering with Starboard Digital, Sygnum aims to offer an institutional-grade solution for Bitcoin DeFi. Experts have predicted that the Bitcoin yield opportunity could reach up to $1 trillion. This potential growth signals that the market for Bitcoin DeFi solutions is only beginning to mature.

Practical Benefits for Investors

One key feature of the BTC Alpha Fund is that shares can be pledged as collateral for U.S. dollar Lombard loans. This allows investors to unlock liquidity without selling their Bitcoin holdings. By offering this collateral option, Sygnum provides an attractive solution for long-term Bitcoin holders.

The BTC Alpha Fund also includes a risk management framework to help navigate market volatility.

With Sygnum’s regulated banking infrastructure and Starboard’s expertise in risk management, the fund offers a secure investment option. This combination of flexibility and stability makes it an appealing product for institutional investors seeking exposure to Bitcoin.

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