Sygnum, a global digital asset banking group, announces the launch of the Starboard Sygnum BTC Alpha Fund in collaboration with Starboard Digital and Starmark as AIFM, with Sygnum providing “regulated distribution and banking infrastructure.”
The fund addresses demand from investors “seeking to generate yield on their Bitcoin holdings while maintaining full exposure to Bitcoin’s price appreciation.”
As Bitcoin has emerged as a “portfolio building block and for many investors their highest value asset, the BTC Alpha Fund offers a solution to grow Bitcoin holdings through systematic arbitrage trading returns.”
The fund has reportedly generated “interest from professional investors seeking quality yield opportunities on their Bitcoin holdings.”
The fund targets 8-10% annual returns “net of fees, paid in Bitcoin allowing investors to grow their number of Bitcoin over time.”
Markus Hämmerli, who is leading the BTC Alpha Fund offering at Sygnum:
“Bitcoin has become a key exposure in modern portfolios, and many of our clients want to stay invested while building their positions further. The BTC Alpha Fund helps investors participate in Bitcoin’s price performance while aiming to earn additional Bitcoin through trading returns, all within an institutional-grade framework.”
The Cayman Islands-domiciled fund employs “arbitrage trading strategies to generate returns that are converted into Bitcoin, effectively growing the number of Bitcoin held by investors.”
With monthly liquidity and a “risk management framework, the fund is designed to meet the needs of professional and institutional investors seeking quality yield opportunities in digital assets.”
A key feature of the fund is its integration “with Sygnum’s broader banking services.”
Fund shares will be eligible as “collateral for USD Lombard Loans at Sygnum so that investors can access liquidity for other opportunities without selling their fund positions.”
This addresses a common challenge “for long-term Bitcoin holders who may have liquidity needs.”
The fund leverages institutional-grade service providers and “will be available to qualified and professional investors in eligible markets.”
This launch reinforces Sygnum’s commitment “to advancing regulated Bitcoin products, building on the bank’s ₿itcoin@Sygnum. initiative announced in October 2024 and its established presence in Lugano’s Plan ₿ HUB.”
As covered, Sygnum is a global digital asset banking group, founded on Swiss and Singapore heritage.
They aim to empower professional and institutional investors, banks, corporates and DLT foundations “to invest in digital assets with complete trust.”
Their team enables this through “institutional-grade security, expert personal service and portfolio of regulated digital asset banking, asset management, tokenization and B2B services.”
In Switzerland, Sygnum holds a “banking license and has CMS and Major Payment Institution licences in Singapore.”
The group is also regulated in “the established global financial hubs of Abu Dhabi and Luxembourg and is registered in Liechtenstein.”