TLDR:
- The investment vehicle has attracted over 750 BTC from institutional investors seeking passive yield generation.
- The strategy relies on systematic arbitrage between spot and derivatives markets to achieve returns ranging from 8% to 10%.
- The fund allows shares to be used as collateral for Lombard loans, providing liquidity without the need to sell assets.
Sygnum’s new Bitcoin income funds raised over $65 million during their initial stages. Developed in collaboration with Starboard Digital, the initiative has garnered significant interest from professional investors due to its focus on generating consistent yields.
Unlike traditional investment funds that rely solely on price appreciation, this vehicle seeks to capitalize on market inefficiencies. Through precise execution, the fund delivered a net annualized return of 8.9% during its first full quarter of operations following its debut in October.
This milestone in the financial sector demonstrates the growing demand for products that offer BTC-denominated income without sacrificing long-term exposure. Managers at the Swiss institution emphasize that the primary goal is to maintain stable profitability, regardless of current market volatility.
Arbitrage Strategies and Institutional Liquidity
The BTC Alpha Fund operates by focusing on arbitrage strategies that profit from price discrepancies across various exchanges. By operating this way, the fund mitigates risks associated with price corrections and focuses instead on accumulating more Bitcoin units.
In addition to the generated yields, fund subscribers benefit from additional liquidity advantages within the Sygnum ecosystem. Fund shares are eligible as collateral for Lombard loans, allowing investors to obtain working capital without liquidating their digital asset positions.
In summary, this proposal positions itself as a fundamental tool for institutional portfolios in jurisdictions such as Switzerland and Singapore. The integration of BTC-backed banking loan platforms underlines the entity’s commitment to innovation and ensuring users maintain total control over their assets.
