Cryptocurrency banking group Sygnum said its market-neutral Bitcoin fund posted an annualized return of 8.9% in the fourth quarter of 2025, highlighting growing institutional demand for yield-focused crypto strategies amid volatile prices.
Sygnum on Wednesday also announced seed-phase completion 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.
Sygnum said the fund reflects a broader shift among institutional investors toward structured Bitcoin products that aim to produce steady returns while maintaining exposure to the asset.
“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,” said Sygnum’s head of portfolio management, Markus Hämmerli.
The fund’s performance came despite a sharp pullback in the broader crypto market. Bitcoin prices have fallen about 25% since the fund’s launch, according to CoinGecko data, highlighting the appeal of strategies designed to generate returns independent of price appreciation.
How does the fund’s market-neutral strategy work?
Sygnum said its BTC Alpha Fund generates returns from both directional Bitcoin exposure and arbitrage on centralized crypto exchanges (CEXs), trading spot cryptocurrencies and derivatives.
“The fund’s investment objective is to outperform BTC,” the fund’s web page states, adding that the strategy is designed to capture inefficiencies and pricing dislocations across CEXs and instruments, including perpetual swaps, futures, options and spot markets.
“Main strategies driving the performance are leveraged carry trades and cross exchange arbitrage,” Hämmerli told Cointelegraph.
Returns are generated and accumulated in Bitcoin. Investors can realize gains by redeeming their shares at the fund’s net asset value, allowing the fund to increase holdings over time rather than pay out cash or Bitcoin periodically.
“The fund’s Q4 performance demonstrates that professional Bitcoin management can deliver meaningful results even when spot markets are flat or declining,” Hämmerli said in the announcement.
Related: Nomura’s Laser Digital rolls out yield-bearing Bitcoin fund
Nikolas Skarlatos, founder of Starboard Digital, a Greek company that co-launched the fund with Sygnum, highlighted the challenges of institutional investors in generating yields on Bitcoin while maintaining exposure to its appreciation.
“The fund’s early results validate that institutional-grade Bitcoin yield strategies aim to generate 8–10% annual returns across market conditions,” he said.
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