Swiss digital asset bank Sygnum has successfully raised over 750 bitcoin, valued at approximately $65 million, during the seed fundraising phase of its BTC Alpha Fund. Launched in October 2025 through a partnership with Athens-based trading firm Starboard Digital, the Cayman Islands-domiciled fund completed its initial capital raise within just four months of operation.
Fund Performance and Strategy
The fund delivered an 8.9% annualized net return in its first quarter, closely tracking its stated target range of 8% to 10% annual returns. Markus Hämmerli, who leads the BTC Alpha Fund offering at Sygnum, noted that early performance demonstrates professional bitcoin management can deliver meaningful results even when spot markets remain flat or decline.
The investment vehicle employs systematic arbitrage strategies designed to capture pricing inefficiencies across centralized exchanges and instruments including perpetual swaps, futures contracts, options, and spot markets. Rather than relying solely on price appreciation, the fund exploits temporary pricing dislocations between venues. All profits are converted directly into bitcoin and distributed to investors, allowing them to accumulate additional BTC over time without reducing exposure to the underlying asset's long-term appreciation potential.
Institutional-Grade Infrastructure and Liquidity
The fund targets professional and institutional investors in approved jurisdictions including Switzerland and Singapore. A distinctive feature is that fund shares can serve as collateral for dollar-denominated Lombard loans through Sygnum, enabling investors to unlock liquidity for other opportunities without liquidating bitcoin positions. This addresses the challenge long-term holders face when needing short-term capital while wanting to maintain crypto exposure.
The fund operates with monthly redemption windows and implements strict risk management protocols. Institutional standards are reflected in its operational setup: KPMG serves as auditor and NAV Consulting as administrator, typical of traditional hedge fund structures.
Regulatory Context and Sygnum's Ecosystem
The BTC Alpha Fund builds on Sygnum's broader BitcoinSygnum initiative announced in October 2025, which aims to expand regulated bitcoin products and services. Sygnum holds banking licenses in Switzerland and major payment institution licenses in Singapore, enabling it to offer institutional-grade digital asset services under established regulatory frameworks. The strong investor response signals growing institutional demand for sophisticated bitcoin yield strategies beyond simple buy-and-hold approaches.