Swiss digital asset bank Sygnum Bank announced on Thursday that it had completed the seed phase of its Starboard Sygnum BTC Alpha Fund. The digital bank managed to raise more than 750 BTC, which is equivalent to approximately $50 million at current prices. The fund tapped into the growing interest from institutional investors in just four months since the fund’s October 2025 launch.
The fund uses market-neutral arbitrage strategies to take advantage of price differences between the Bitcoin spot and derivatives markets. It’s targeting an 8–10% return in a year in BTC, no matter how much the spot price changes. Interestingly, the fund clocked in an impressive 8.9% net return in Q4 2025. This is evidence enough for the rising institutional demand for yield-generating digital asset strategies.
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Investors in eligible jurisdictions, including Switzerland and Singapore, can access the fund through institutional channels. Select clients may also use their fund shares as collateral for USD Lombard Loans, enhancing liquidity without liquidating BTC holdings.
Other Crypto Yield Funds in the Market
There are quite a few Bitcoin yield vehicles currently in the market. A fitting example of these would be covered-call ETFs like Canada’s Purpose Bitcoin Yield ETF (BTCY), which generate income through options trading but cap upside potential and often involve higher leverage risks. U.S.-based Bitcoin strategy ETFs, such as the ProShares Bitcoin Strategy ETF (BITO), use futures to get exposure but don’t focus on yield generation.
In contrast to Sygnum’s Bitcoin-denominated yield fund, traditional Wall Street players such as J.P. Morgan offer a different approach. JPMorgan Asset Management launched the My OnChain Net Yield Fund (MONY) in December 2025. This is a tokenized money-market product on the Ethereum blockchain that earns U.S. dollar yield from Treasury securities and repurchase agreements. MONY is aimed at qualified investors and blends traditional finance with blockchain settlement but does not offer Bitcoin exposure. A recent study showed that 68% of institutions are now eyeing BTC products.
