Cryptocurrency banking group Sygnum said its market-neutral Bitcoin fund delivered an annualized return of 8.9% in the fourth quarter of 2025, underscoring rising institutional appetite for yield-generating crypto strategies amid ongoing price volatility.
The Swiss-based bank also announced on Wednesday that it has completed the seed phase of its Starboard Sygnum BTC Alpha Fund, which raised more than 750 Bitcoin from professional and institutional investors within four months of its launch in October 2025.
According to Sygnum, the fund reflects a broader shift among institutional investors toward structured Bitcoin products designed to generate stable returns while preserving exposure to the underlying asset.
“As Bitcoin becomes a core portfolio allocation for institutional investors, we’re seeing growing demand for strategies that can deliver returns beyond simple price appreciation,” said Markus Hämmerli, Sygnum’s head of portfolio management.
The fund’s performance comes despite a sharp downturn in the broader crypto market. Bitcoin has fallen roughly 25% since the fund’s launch, based on CoinGecko data, highlighting the appeal of strategies that aim to produce returns independent of market direction.
Sygnum said the BTC Alpha Fund employs market-neutral arbitrage and relative-value strategies across spot and derivatives markets on centralized crypto exchanges. According to the fund’s website, its objective is to outperform Bitcoin by exploiting inefficiencies and pricing dislocations across instruments such as perpetual swaps, futures, options, and spot markets.
“The main drivers of performance are leveraged carry trades and cross-exchange arbitrage,” Hämmerli said.
Returns are generated and accrued in Bitcoin, with investors able to realize gains by redeeming their shares at the fund’s net asset value. This structure allows the fund to compound its Bitcoin holdings over time rather than distributing periodic cash or Bitcoin payouts.
“The fund’s fourth-quarter performance shows that professional Bitcoin management can deliver meaningful results even when spot markets are flat or declining,” Hämmerli said.
Nikolas Skarlatos, founder of Starboard Digital—the Greek firm that co-launched the fund with Sygnum—said the strategy addresses a key challenge for institutional investors seeking to earn yield on Bitcoin without sacrificing exposure to its long-term upside.
“The fund’s early results validate that institutional-grade Bitcoin yield strategies can target annual returns of 8% to 10% across varying market conditions,” Skarlatos said.
