Cryptocurrency banking group Sygnum stated its market-neutral Bitcoin fund posted an annualized return of 8.9% within the fourth quarter of 2025, highlighting rising institutional demand for yield-focused crypto methods amid risky costs.
Sygnum on Wednesday additionally introduced seed-phase completion of its Starboard Sygnum BTC Alpha Fund, which attracted greater than 750 Bitcoin (BTC) from skilled and institutional traders in simply 4 months following its October 2025 launch.
Sygnum stated the fund displays a broader shift amongst institutional traders towards structured Bitcoin merchandise that purpose to supply regular returns whereas sustaining publicity to the asset.
“As Bitcoin turns into a core portfolio allocation for institutional traders, we’re seeing rising demand for methods that may generate returns past easy value appreciation,” stated Sygnum’s head of portfolio administration, Markus Hämmerli.
The fund’s efficiency got here regardless of a pointy pullback within the broader crypto market. Bitcoin costs have fallen about 25% for the reason that fund’s launch, according to CoinGecko knowledge, highlighting the attraction of methods designed to generate returns impartial of value appreciation.
How does the fund’s market-neutral technique work?
Sygnum stated its BTC Alpha Fund generates returns from arbitrage and relative-value methods throughout spot and derivatives markets on centralized crypto exchanges (CEXs).
“The fund’s funding goal is to outperform BTC,” the fund’s net web page states, including that the technique is designed to seize inefficiencies and pricing dislocations throughout CEXs and devices, together with perpetual swaps, futures, choices and spot markets.
“Major methods driving the efficiency are leveraged carry trades and cross change arbitrage,” Hämmerli advised Cointelegraph.
Returns are generated and accrued in Bitcoin. Buyers can understand good points by redeeming their shares on the fund’s web asset worth, permitting the fund to extend holdings over time quite than pay out money or Bitcoin periodically.
“The fund’s This fall efficiency demonstrates that skilled Bitcoin administration can ship significant outcomes even when spot markets are flat or declining,” Hämmerli stated within the announcement.
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Nikolas Skarlatos, founding father of Starboard Digital, a Greek firm that co-launched the fund with Sygnum, highlighted the challenges of institutional traders in producing yields on Bitcoin whereas sustaining publicity to its appreciation.
“The fund’s early outcomes validate that institutional-grade Bitcoin yield methods purpose to generate 8–10% annual returns throughout market situations,” he stated.
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