Swiss digital asset bank Sygnum and Athens-based Starboard Digital Strategies have successfully raised over 750 bitcoin worth approximately $65 million for their newly launched BTC Alpha Fund, signaling surging institutional demand for yield-focused bitcoin investment strategies.
Key Takeaways
- Sygnum and Starboard raised over 750 BTC in seed funding for the BTC Alpha Fund, equivalent to around $65 million.
- The fund delivered an annualized 8.9 percent net return in its first quarter, closely matching its 8 to 10 percent return target.
- Investors retain full bitcoin exposure while earning yield through market-neutral arbitrage strategies.
- Fund shares are eligible as collateral for Lombard loans, enabling liquidity access without needing to sell fund positions.
What Happened?
Launched in October 2025, the Starboard Sygnum BTC Alpha Fund aims to offer institutional investors a way to grow their bitcoin holdings without relying on price increases. The fund completed its seed fundraising round by January 2026, just four months after launch, raising over 750 BTC from professional and institutional investors in Switzerland, Singapore, and other approved markets.
📣 News: Sygnum and Starboard Digital raise over 750 BTC for BTC Alpha Fund
— Sygnum Bank (@sygnumofficial) January 29, 2026
▪️ Over 750 BTC raised from professional investors in first four months, validating institutional demand for yield-generating Bitcoin strategies
▪️ First regulated bank globally to offer market-neutral… pic.twitter.com/1PTHym83RW
Sygnum and Starboard Target Yield Beyond Price Appreciation
The BTC Alpha Fund employs systematic arbitrage strategies that identify price inefficiencies across different crypto instruments and exchanges. These include perpetual swaps, futures, options, and spot markets. The approach allows the fund to earn a market-neutral yield, meaning its returns are not tied to the day-to-day movements of bitcoin’s spot price.
According to Markus Hämmerli, head of the BTC Alpha Fund at Sygnum, the early performance proves that professionally managed bitcoin strategies can thrive even when the market remains flat or in decline. He noted:
The fund delivered an annualized net return of 8.9 percent in Q4 2025, aligning with its target range of 8 to 10 percent annual returns in BTC.
Designed for Institutional Standards
Sygnum has positioned this fund as the first regulated bank-backed product to offer market-neutral bitcoin yield generation. It combines the regulated banking infrastructure of Sygnum with Starboard Digital’s experience in designing institutional crypto investment products.
The BTC Alpha Fund is:
- Domiciled in the Cayman Islands.
- Audited by KPMG.
- Administered by NAV Consulting.
- Designed to keep assets off-exchange.
- Structured with monthly redemption windows and institutional-grade risk controls.
In addition, the fund’s shares can be used as collateral for USD-denominated Lombard loans through Sygnum’s banking platform. This feature allows long-term bitcoin holders to unlock capital without liquidating their fund positions.
Meeting a Growing Institutional Appetite
The strong interest in the BTC Alpha Fund reflects a wider trend: institutional investors are seeking more sophisticated bitcoin strategies beyond basic buy-and-hold positions. A report cited by Sygnum indicates that 68 percent of institutional investors have already invested in bitcoin ETFs or plan to do so, and many are now exploring yield-generating strategies within regulated structures.
Starboard’s Nikolas Skarlatos added:
This fund aims to solve that challenge, offering a way to earn bitcoin-denominated returns while maintaining long-term exposure to the asset.
CoinLaw’s Takeaway
I think this fund is a clear sign that institutional investors are getting smarter about bitcoin. In my experience, a lot of them have been sitting on idle crypto positions, unsure how to generate yield without risking exposure. Sygnum and Starboard are giving them a bank-grade solution that doesn’t force them to choose between liquidity and long-term holding. I found it particularly impressive that they delivered a solid return in a flat market that’s not easy to do with crypto. This is a big step in making bitcoin yield products more mainstream, and I expect more banks to follow suit.
