Sygnum Introduces Ethereum Investment Fund Aiming for 8-10% Annual Returns

Sygnum Launches New Ethereum Investment Fund

Sygnum, a Swiss bank specializing in digital assets, has unveiled a new investment fund focused on Ethereum, aiming for annual yields of 8% to 10% in ETH. This fund, known as the Sygnum ETH Alpha Fund SP, officially opened its doors to professional investors on November 2.

Investment Strategies

This innovative fund stands out by incorporating various investment strategies, including Ethereum staking, options trading, arbitrage, and derivatives, to outperform traditional staking rewards, which currently hover around 2% to 3% per year. Notably, the fund measures performance in ETH, allowing investors to track their gains directly in the cryptocurrency, rather than in fiat currency, providing a unique perspective on their investments amidst fluctuating market prices.

Markus Hämmerli, head of asset management at Sygnum, noted that institutional investors have begun to evaluate their Ethereum holdings primarily in ETH, diverging from traditional dollar valuation.

This shift supports Sygnum’s approach, as the fund is structured to enhance Ethereum holdings without necessitating the sale of existing assets.

Fund Structure and Risks

Sygnum’s investment strategy begins with native staking of Ethereum, rewarding holders for securing the blockchain. To augment returns further, the fund employs additional trading strategies, such as selling options contracts to generate premiums, arbitraging price discrepancies across different platforms, and utilizing derivatives to earn income from variations in financing costs.

Despite its market-neutral design—which aims to mitigate dependency on Ethereum's price increases—the fund is still subject to price volatility. Therefore, a drop in ETH’s dollar value could potentially diminish an investor's holdings when measured in fiat currency, even if the number of ETH in the fund increases.

Investment Details

Open to qualified investors in authorized markets, including Switzerland, the fund stipulates a minimum investment of $100,000 or the equivalent in ETH, with monthly subscription opportunities and specific redemption requirements. The fund includes inherent risks associated with derivatives and market movements, and features sophisticated storage through Sygnum Protect, the bank’s off-exchange custody service. This arrangement enables traders to operate with holdings securely managed by Sygnum while executing strategies across various trading venues.

Previous Offerings

Earlier in 2025, Sygnum also launched a Bitcoin investment fund, the BTC Alpha Fund, designed similarly to capture returns in BTC, adorned with a blend of market strategies. This dual offering reflects Sygnum's commitment to providing comprehensive financial solutions incorporating cryptocurrencies into traditional financial frameworks.