Sygnum, a pioneering digital asset bank based in Switzerland, has unveiled the BTC Alpha Fund, a new investment vehicle designed to meet the growing demand from investors seeking yield on their Bitcoin holdings. This initiative, developed in collaboration with Starboard Digital and Starmark, aims to provide a balanced approach to Bitcoin investment, allowing clients to benefit from both yield generation and price appreciation. The document provides a justification for the fact that this fund is positioned to attract a diverse range of investors looking to optimize their cryptocurrency portfolios.
Significant Interest from Professional Investors
The BTC Alpha Fund has already garnered significant interest from professional investors, with a target of 8-10% annual returns, net of fees, which are payable in Bitcoin. This fund is particularly appealing to those looking to enhance their Bitcoin portfolios through systematic arbitrage trading strategies. Markus Hmmerli, who oversees the fund at Sygnum, emphasized that Bitcoin has become an essential component of modern investment portfolios, prompting many clients to seek ways to increase their exposure while remaining invested.
Designed for Professional and Institutional Investors
Designed specifically for professional and institutional investors, the BTC Alpha Fund offers monthly liquidity and adheres to a stringent risk management framework. A standout feature of the fund is its seamless integration with Sygnum's comprehensive banking services, allowing investors to use their fund shares as collateral for USD Lombard Loans. This innovative approach provides a pathway for accessing liquidity without the need to liquidate fund holdings, further enhancing the attractiveness of the investment.
Commitment to Regulated Bitcoin Products
The launch of the BTC Alpha Fund underscores Sygnum's commitment to advancing regulated Bitcoin products, positioning the bank as a leader in the evolving landscape of digital asset investment solutions.
