Swiss digital‑asset bank Sygnum introduced an ETH‑denominated fund that aims to deliver 8%‑10% net annual returns through staking, options, arbitrage and derivatives strategies.
Swiss digital‑asset bank Sygnum announced the launch of its Ethereum Alpha Fund, a new investment vehicle that seeks to generate net annual returns of 8% to 10% in ETH for professional and qualified investors. The product, which became available on November 2, combines native Ethereum staking with a suite of market‑neutral trading strategies, including options premiums, arbitrage and derivatives funding, while keeping all collateral off‑exchange through Sygnum Protect.
According to Sygnum’s product documentation, the fund first stakes ETH to earn protocol rewards, then augments that income with options premium collection, price‑difference arbitrage across venues and funding‑rate income from derivatives positions. These tactics are described as market‑neutral, meaning the targeted 8%‑10% return is not dependent on ETH price appreciation. However, because performance is measured in ETH, investors remain exposed to the cryptocurrency’s price movements in fiat terms.
The fund uses Sygnum Protect, the bank’s off‑exchange custody service, to hold trading collateral rather than storing it on third‑party exchanges. This arrangement aims to reduce exchange‑related counterparty risk, though it does not eliminate all trading or liquidity risks. Minimum commitment is set at $100,000 or its ETH equivalent. Subscriptions are accepted monthly with two business days’ notice, while redemptions require a 15‑calendar‑day notice and are subject to a 10% gate per investor.
The ETH Alpha Fund follows Sygnum’s Bitcoin Alpha Fund, launched in October 2025, which offers a similar 8%‑10% return target in BTC. Both products reflect a broader trend among institutional‑focused crypto banks to provide yield‑enhancing solutions beyond traditional staking rewards, which Sygnum estimates at roughly 2%‑3% per year. Future developments to monitor include the fund’s actual performance versus its objective, any adjustments to its derivative exposure, and potential regulatory scrutiny of leveraged crypto strategies in Switzerland and other approved markets.
The fund targets net annual returns of 8% to 10% in ETH after fees.
Only qualified and professional investors in approved markets, such as Switzerland, with a minimum investment of $100,000 or its ETH equivalent.
It uses off‑exchange custody (Sygnum Protect) and employs market‑neutral trading strategies, though it remains exposed to ETH price fluctuations and derivative‑related risks.
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