Share this article
Swiss Bank Sygnum Unveils Bitcoin Yield Fund as BTC DeFi Demand Grows
The BTC Alpha Fund aims for 8%-10% annual returns through arbitrage while keeping full Bitcoin exposure.
Oct 1, 2025, 6:00 a.m.
What to know:
- Sygnum launches BTC Alpha Fund with Starboard Digital, targeting 8%-10% returns
- Fund employs arbitrage trading strategies, with payouts made in Bitcoin
- Shares can be used as collateral for loans at Sygnum, adding liquidity options
Swiss digital asset bank Sygnum has launched a new investment vehicle designed to generate yield on Bitcoin without reducing investors’ exposure to its price movements.
The BTC Alpha Fund, developed in partnership with Athens-based Starboard Digital, uses arbitrage strategies to target net annual returns of 8%-10%, which are paid directly in Bitcoin.
STORY CONTINUES BELOW
Don't miss another story.Subscribe to the Crypto Daybook Americas Newsletter today. See all newsletters
The fund is domiciled in the Cayman Islands and caters to professional and institutional investors. By converting arbitrage gains into bitcoin, participants can increase the number of coins they hold while still benefiting from bitcoin’s long-term price appreciation. Sygnum said the product has already drawn strong interest from clients looking for institutional-grade yield options in digital assets.
The fund comes as institutional investors are looking to go beyond just holding bitcoin in their portfolio and use decentralized finance (DeFi) to generate more income from their BTC holdings. The bitcoin DeFi has gained popularity and has the potential to open up a massive market, according to analysts.
Recently, Binance research noted that only ~0.8% of the bitcoin supply is currently being used in DeFi, implying a potential for a large "untapped opportunity." In fact, last year, Julian Love, a deal analyst at Franklin Templeton Digital Assets, said the opportunity could be as much as $1 trillion.
"Bitcoin has become a key exposure in modern portfolios, and many of our clients want to stay invested while building their positions further," said Markus Hämmerli, who is leading the BTC Alpha Fund offering at Sygnum.
Bitcoin liquidity
For investors, one practical feature is that shares in the new fund can be pledged as collateral for U.S. dollar Lombard loans at Sygnum. This setup allows long-term bitcoin holders to unlock liquidity for other investments without selling down their crypto exposure.
Monthly liquidity and a strict risk management framework are intended to give the fund flexibility while addressing volatility in digital markets. The partnership also leverages Starboard Digital’s background in trading and risk management.
Sygnum has been expanding its bitcoin offerings since launching various initiatives last year. The new fund adds to its growing suite of regulated products aimed at bridging traditional finance and the crypto economy.
AI Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk's full AI Policy.
Di più per voi
Cosa sapere:
- As of October 2025, GoPlus has generated $4.7M in total revenue across its product lines. The GoPlus App is the primary revenue driver, contributing $2.5M (approx. 53%), followed by the SafeToken Protocol at $1.7M.
- GoPlus Intelligence's Token Security API averaged 717 million monthly calls year-to-date in 2025 , with a peak of nearly 1 billion calls in February 2025. Total blockchain-level requests, including transaction simulations, averaged an additional 350 million per month.
- Since its January 2025 launch , the $GPS token has registered over $5B in total spot volume and $10B in derivatives volume in 2025. Monthly spot volume peaked in March 2025 at over $1.1B , while derivatives volume peaked the same month at over $4B.
More For You
Turkey's Paribu Buys CoinMENA in $240M Deal, Expanding Into High-Growth Crypto Markets
With the acquisition, Paribu gains regulatory foothold in Bahrain and Dubai and access to the region's fast-growing crypto user base.
What to know:
- Paribu acquires Bahrain- and Dubai-based CoinMENA for up to $240 million.
- Deal marks Turkey’s biggest fintech acquisition and first international crypto M&A, the firm said.
- The move taps into the MENA region’s fast-growing crypto user base and supportive regulatory hubs.
Top Stories
