The bank introduced its BTC Alpha Fund, designed to let clients grow their Bitcoin holdings without selling off their assets. Unlike traditional strategies, the fund channels idle BTC into arbitrage opportunities and decentralized finance (DeFi) protocols, with all profits converted back into Bitcoin.
The model aims to steadily expand investors’ BTC positions while preserving long-term exposure to the asset.
Sygnum highlighted the untapped potential in this space, noting that less than 1% of Bitcoin’s trillion-dollar market cap is currently engaged in DeFi. This leaves what the bank describes as “a massive runway” for yield‑generating products tied directly to the cryptocurrency.
The fund, which pays returns in BTC, is available only to professional and institutional participants. Markus Hammerli, who oversees the initiative, said early demand has been strong.
He also suggested that continued ETF inflows could further amplify Bitcoin’s price, estimating that every $1 billion of fresh capital entering ETFs could lift BTC’s value by between 3% and 6%, given its limited supply.
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