Swiss Bank Sygnum Launches Regulated Bitcoin Yield Fund Targeting 8–10%

Swiss digital asset bank Sygnum has launched the Starboard Sygnum BTC Alpha Fund, a regulated Bitcoin yield product designed to help investors grow their BTC holdings without selling them.

The fund was developed with Starboard Digital, a crypto trading firm, and Starmark, which acts as the Alternative Investment Fund Manager (AIFM). It is domiciled in the Cayman Islands and is available to professional and institutional investors.

How it Works

• Target Yield: 8–10% annually, paid directly in Bitcoin.

• Strategy: Uses systematic arbitrage trading – profiting from small price differences in Bitcoin markets – with all profits converted into additional BTC.

• Exposure: Investors keep full Bitcoin price exposure, while the fund seeks to steadily increase the number of BTC held.

• Liquidity: Subscriptions and redemptions are offered monthly.

• Banking Perk: Fund shares can be pledged as collateral for USD loans at Sygnum Bank, allowing investors to access cash without selling their Bitcoin.

Why it Matters

Sygnum says the product answers growing demand from long-term Bitcoin holders who want to earn extra BTC safely and under regulation, instead of relying on risky lending platforms or unregulated schemes.

“This fund is one of the few high-quality institutional setups available to grow Bitcoin holdings,” said Nikolas Skarlatos of Starboard Digital.

In plain terms: The fund is like a Bitcoin savings account for institutions. It doesn’t sell your BTC — it runs trading strategies to make small profits and pays those out in more Bitcoin, aiming to increase your stack by 8–10% per year.