While much of the crypto market spent late 2025 lurching between rallies and pullbacks, one Bitcoin-focused fund quietly delivered steady gains.
Sygnum, the crypto banking group, revealed that its market-neutral Bitcoin strategy clocked an annualized return of 8.9% during the fourth quarter of 2025 — a result that stands out given how rough price action has been.
The performance underlines a growing reality in crypto: big investors are no longer satisfied with simply riding Bitcoin’s price swings. They want yield too.
Strong Early Interest From Institutions
Sygnum confirmed this week that its Starboard Sygnum BTC Alpha Fund has wrapped up its seed phase, just four months after launching in October 2025.
In that short window, professional and institutional investors committed more than 750 Bitcoin to the fund.
That level of early participation points to a broader shift in mindset.
Institutions are increasingly drawn to structured Bitcoin products that aim for consistent returns without abandoning exposure to the asset itself.
Beyond “Buy and Hold” Bitcoin
According to Sygnum, the fund was designed for investors who see Bitcoin as a long-term portfolio staple but don’t want their returns tied purely to price appreciation.
Markus Hämmerli, Sygnum’s head of portfolio management, said demand for this kind of approach is rising fast.
As Bitcoin cements its place in institutional portfolios, investors are actively looking for strategies that can do more than wait for the next bull run.
Performing Even as Prices Slide
What makes the fund’s results particularly notable is the backdrop.
Since the fund’s launch, Bitcoin’s price has dropped by roughly 25%, based on CoinGecko data.
In that environment, delivering positive returns becomes far more challenging — and far more attractive to risk-aware investors.
This is where market-neutral strategies shine. They are designed to keep generating returns even when spot prices are flat or moving lower.
Inside the Market-Neutral Playbook
Sygnum says the BTC Alpha Fund blends directional Bitcoin exposure with arbitrage opportunities across centralized crypto exchanges.
The strategy trades both spot Bitcoin and derivatives, including perpetual swaps, futures and options.
The goal is not simply to track Bitcoin, but to outperform it by exploiting pricing gaps and inefficiencies between exchanges and instruments.
According to Hämmerli, leveraged carry trades and cross-exchange arbitrage are the key engines behind the fund’s returns.
Returns That Stay in Bitcoin
Unlike traditional funds that distribute cash or crypto payouts, this strategy compounds returns directly in Bitcoin.
Profits accumulate within the fund, and investors realize gains when they redeem their shares at net asset value.
That structure allows the fund’s Bitcoin holdings to grow steadily over time — an appealing setup for investors who want to build BTC exposure while earning yield along the way.
A Signal for Professional Crypto Management
Hämmerli said the fourth-quarter results show that active, professional Bitcoin management can still deliver meaningful outcomes even when the wider market is struggling.
In other words, smart strategy can matter just as much as market direction.
Why Institutional Players Are Paying Attention
Nikolas Skarlatos, founder of Starboard Digital — the Greek firm that co-launched the fund with Sygnum — pointed to a long-standing problem for institutions: earning yield on Bitcoin without giving up its upside.
For him, the fund’s early performance supports the idea that institutional-grade Bitcoin yield strategies can realistically target annual returns of around 8% to 10%, regardless of broader market conditions.
What This Means Going Forward
As more institutions treat Bitcoin as a core allocation rather than a speculative trade, demand for yield-focused, risk-managed strategies is likely to grow.
Funds like Sygnum’s BTC Alpha are positioning themselves as a bridge between traditional asset management discipline and the unique mechanics of crypto markets.
What’s next? If volatility remains the norm, expect more institutional capital to flow toward Bitcoin strategies that aim to make money whether prices are climbing — or falling.
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