Cryptocurrency Banking Group Sygnum Sees Significant Returns on Bitcoin Fund
Cryptocurrency banking group Sygnum has announced that its market-neutral Bitcoin fund has posted an annualized return of 8.9% in the fourth quarter of 2025, highlighting the growing demand for yield-focused crypto strategies among institutional investors. This development is particularly notable given the volatility in cryptocurrency prices over the same period. Sygnum’s success underscores the shift towards structured Bitcoin products that aim to generate steady returns while maintaining exposure to the asset.
Sygnum also announced the completion of the seed phase of its Starboard Sygnum BTC Alpha Fund, which attracted more than 750 Bitcoin (BTC) from professional and institutional investors in just four months following its October 2025 launch. This significant uptake demonstrates the appeal of strategies designed to produce returns independent of price appreciation, especially during periods of market downturn. According to Sygnum’s head of portfolio management, Markus Hämmerli, “As Bitcoin becomes a core portfolio allocation for institutional investors, we’re seeing growing demand for strategies that can generate returns beyond simple price appreciation.”
Market-Neutral Strategy Explained
The Starboard Sygnum BTC Alpha Fund generates returns through arbitrage and relative-value strategies across spot and derivatives markets on centralized crypto exchanges (CEXs). The fund’s investment objective is to outperform BTC by capturing inefficiencies and pricing dislocations across CEXs and instruments, including perpetual swaps, futures, options, and spot markets. Hämmerli explained that “Main strategies driving the performance are leveraged carry trades and cross-exchange arbitrage,” indicating a sophisticated approach to managing risk and maximizing returns.
Bitcoin price since October 2025. Source: CoinGecko
The fund’s returns are generated and accumulated in Bitcoin, allowing investors to realize gains by redeeming their shares at the fund’s net asset value. This approach enables the fund to increase holdings over time rather than pay out cash or Bitcoin periodically, aligning with long-term investment strategies. As Hämmerli noted, “The fund’s Q4 performance demonstrates that professional Bitcoin management can deliver meaningful results even when spot markets are flat or declining.”
Institutional Demand and Challenges
Nikolas Skarlatos, founder of Starboard Digital, highlighted the challenges faced by institutional investors in generating yields on Bitcoin while maintaining exposure to its appreciation. The early results of the fund validate that institutional-grade Bitcoin yield strategies can generate 8–10% annual returns across market conditions, addressing a significant need in the market. This development is part of a broader trend where institutions are increasingly looking for sophisticated strategies to manage their cryptocurrency holdings effectively.
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