Sygnum Eyes Up To 10% ETH Returns, But Its Bitcoin Twin Made Just 2.5%
Swiss crypto bank Sygnum is targeting returns of 8% to 10% a year in ETH from a new fund, but its Bitcoin version has returned just 2.5% since launching in October 2025.
Key Takeaways
- The Sygnum ETH Alpha Fund targets 8-10% a year in ETH after fees, against roughly 2-3% from staking alone
- Sygnum’s Bitcoin Alpha Fund has made a net 2.5% in Bitcoin since it launched in October 2025
- The new fund opened on November 2 with seed capital, and Sygnum will not say how big it is
- All returns are paid in ETH, so investors still take the full hit if the ETH price falls
Chasing More Than Staking
Corporate treasuries and exchange-traded funds are now among the biggest stakers of ETH, and staking rewards of about 2% to 3% a year have become the standard return on large ETH holdings. Sygnum’s pitch is that long-term holders want more coins, not more dollars.
“Institutions that hold ETH for the long term increasingly think in ETH, not dollars, and judge their year by whether they end it holding more,” said Markus Hämmerli, Sygnum’s head of asset management, in the fund announcement.
The fund keeps its ETH staked and runs three trading strategies on top, Hämmerli told Fathom: statistical arbitrage, volatility arbitrage, and funding and cross-exchange arbitrage. These aim to profit from price gaps between trading venues, options premiums and the fees traders pay to hold leveraged positions.
The Bitcoin Test
Sygnum already runs the same idea for Bitcoin, and the results so far fall well short of the new fund’s target.
| Return | Paid in | Figure |
|---|---|---|
| ETH staking alone | ETH | About 2-3% a year |
| ETH Alpha Fund target | ETH | 8-10% a year |
| BTC Alpha Fund since Oct 2025 | Bitcoin | 2.5% in total |
| BTC strategy, last 3 years | Bitcoin | 7.6% a year |
Hämmerli said the Bitcoin fund’s 2.5% net return reflects a period when trading opportunities came in below expectations. The underlying strategy returned 7.6% a year over the past three years, he said.
The Bitcoin fund runs a narrower mix of funding and cross-exchange trades. The 8-10% ETH target is based on returns the fund’s managers have earned running similar strategies in other currencies such as the U.S. dollar, Hämmerli told Fathom.
Also Read: Gemini Bets On Hyperliquid As 4th Staking Asset To Cut Slashing Risk
The Catch
The trading strategies are designed to be market-neutral, but the fund itself is priced in ETH. If ETH falls in price, investors lose dollar value even if their ETH balance grows.
The fund’s returns also depend on funding rates and options premiums, which rise and fall with market activity. Trading runs through Sygnum Protect, which keeps collateral at Sygnum’s regulated bank rather than on the exchanges.
“We launched the fund with seed capital and do not disclose its size at this stage,” Hämmerli told Fathom.
Who Can Buy In
The fund is open only to qualified and professional investors in markets where it is registered, such as Switzerland. Hämmerli said it targets long-term ETH holders including corporate treasuries, foundations, family offices and private individuals.
It is Sygnum’s second fund of this kind in just over a year, after the Starboard Sygnum BTC Alpha Fund in October 2025. Sygnum Asset Management, part of Sygnum Bank, runs the fund.
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