Sygnum Bank and Starboard Digital have attracted more than sixty-five million dollars for their innovative Bitcoin investment fund, delivering an impressive eight point nine percent annualized return in its initial quarter.
Swiss digital asset bank Sygnum Bank, alongside Starboard Digital, has successfully gathered over seven hundred fifty Bitcoin, valued at more than sixty-five million dollars at current market rates, for its Bitcoin investment vehicle.
This venture, known as the Bitcoin Alpha Fund, is not just any fund; it is engineered to create yield from Bitcoin holdings without depending on the volatile price increases often associated with cryptocurrency investments.
Launched in October of last year and domiciled in the Cayman Islands, this fund reported an eight point nine percent annualized net return in its first complete quarter. It aims for annual returns between eight and ten percent, meticulously capturing price variances between spot and derivative markets.
But what really sets this fund apart? It employs systematic arbitrage strategies—an approach that seizes on pricing discrepancies across different exchanges. This method provides a potential framework for generating steady returns, regardless of the broader market's fluctuations.
As we observe the financial landscape, it becomes evident that there is a burgeoning demand among institutional investors for Bitcoin strategies that not only yield income but also preserve long-term exposure. Markus Hämmerli, Sygnum's head of portfolio management, emphasizes this shift towards income-generating strategies.
The fund is accessible to professional investors in select jurisdictions, including Switzerland and Singapore, opening doors to a wider audience interested in Bitcoin investments.
Moreover, shares in the fund come with additional benefits. They are eligible as collateral for Lombard loans through Sygnum, providing a unique opportunity for investors to unlock liquidity without relinquishing control over their Bitcoin positions.
Earlier this year, Sygnum joined forces with the Bitcoin lending startup Debifi to introduce what they claim is the first bank-backed loan platform that allows borrowers to maintain ownership of their Bitcoin, a significant step in the evolution of financial services around digital assets.
As we reflect on these developments, we invite you to consider the implications. What does this mean for the future of Bitcoin as a reliable asset class? Let’s explore these questions together.
Feel free to share your thoughts below—your perspective could illuminate this fascinating dialogue.