Swiss cryptocurrency bank Sygnum has successfully raised over 750 Bitcoin for its market-neutral BTC Alpha Fund, highlighting increasing interest from institutional and professional investors in yield-focused crypto products. Launched in October 2025, the fund achieved an annualized return of 8.9% in the fourth quarter, despite a broader decline in Bitcoin prices.
How the BTC Alpha Fund Works
The market-neutral strategy of the BTC Alpha Fund is designed to generate returns independent of Bitcoin’s price movements. The fund combines directional exposure to Bitcoin with arbitrage opportunities across centralized exchanges (CEXs), trading spot assets and derivatives including futures, options, and perpetual swaps. Key strategies include leveraged carry trades and cross-exchange arbitrage, allowing the fund to capture market inefficiencies and price dislocations.
Performance and Investor Benefits
Returns are accumulated in Bitcoin, enabling the fund to increase holdings over time. Investors can realize gains by redeeming shares at the fund’s net asset value, providing a flexible approach to yield generation. The fund’s strong performance demonstrates that professional Bitcoin management can deliver meaningful returns even in flat or declining markets.
The BTC Alpha Fund reflects a broader shift among institutional investors toward structured Bitcoin products that aim to produce consistent returns while maintaining exposure to the cryptocurrency. Early results suggest that 8–10% annual returns are achievable across varying market conditions, positioning the fund as a benchmark for institutional-grade Bitcoin investment strategies.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.