Key Insights:
- Starboard Sygnum BTC Alpha Fund attracts more than 750 BTC of institutional funds.
- Bitcoin has dropped approximately 25% since its inception, as the fund has focused on yield.
- Strategy targets generate income, but do not liquidate Bitcoin.
Starboard Sygnum BTC Alpha Fund has completed its seed phase after raising “over 750” Bitcoin (BTC) from professional and institutional investors within its first four months, according to a statement from digital asset banking group Sygnum.
Sygnum Highlights Institutional Demand in the Falling Bitcoin Market.
The capital raise was reported to have occurred during a period of broader market weakness, with Bitcoin prices declining by about 25% since the fund’s launch in October 2025, according to CoinGecko data.
According to Sygnum, investor participation is a sign of greater institutional activity in actively managed Bitcoin strategies that are expected to generate yield without losing exposure to the underlying asset.
The fund was also initiated with Starboard Digital Strategies, a firm based in Athens that designs and manages proprietary and regulated asset solutions, market-neutral strategies, and customized investment products.
The structure is aimed at qualified professional investors in approved jurisdictions, such as Switzerland and Singapore, and has institutional-level service providers.
Institutional Demand for Structured Bitcoin Products.
Sygnum stated that the fund reflects a move away from strategies based solely on directional price appreciation, toward approaches that aim to capture returns across varying market conditions.
Markus Hämmerli, Sygnum’s head of portfolio management and head of the BTC Alpha Fund, said demand is increasing for strategies that can generate returns beyond spot price performance.
Source: SYGNUM
He noted that Bitcoin’s role as a portfolio allocation for institutional investors has expanded, driving interest in professionally managed products that focus on yield generation and structured risk management.
Sygnum also mentioned a study that found 68% of institutional investors have invested in BTC exchange-traded products or intend to do so.
The company attributed this development to the increased demand for professionally managed yield-generating strategies in Bitcoin, which places the fund in this changing investment environment.
Fund Performance During Market Pullback
Since the launch, Bitcoin prices have fallen by about 25%, according to CoinGecko data referenced by Sygnum.
The firm said the fund’s early performance occurred despite the broader market pullback, underscoring the appeal of strategies designed to generate returns independent of spot price movements.
Hämmerli stated that the fund’s Q4 performance demonstrated that professional Bitcoin management strategies can deliver results during periods when spot markets are flat or declining.
The company said that institutional investors are moving away from purely directional exposure toward approaches that perform across different market environments.
Structure and Liquidity Features
The Sygnum BTC Alpha Fund provides monthly liquidity while keeping assets off-exchange, according to Sygnum.
The fund uses institutional-grade service providers and targets qualified professional investors in approved jurisdictions.
The firm also highlighted that the fund’s approach reflects ongoing changes in market structure, including shifting exchange-traded fund flows and structurally declining spot Bitcoin volatility.
Sygnum stated that the fund was designed to meet demand from investors seeking yield within an institutional-grade framework.
Yield Targets and Institutional Strategy Context
Nikolas Skarlatos, founder of Starboard Digital, said the fund’s early results indicate that institutional-grade Bitcoin yield strategies aim to generate annual returns of 8% to 10% across market conditions.
He also reported difficulties institutional investors face in realizing gains on Bitcoin and retaining their exposure to future price increases.
The firm designs and operates proprietary and regulated asset solutions, market-neutral strategies, and tailored investment products. Sygnum stated that institutional investors are increasingly seeking structured Bitcoin products that provide both exposure and yield generation.
The firm said that the fund was designed to capture inefficiencies across centralized exchanges and derivative instruments as part of a broader trend toward structured digital asset investment strategies.
Broader Market Context and Institutional Adoption
Sygnum stated that investors are shifting from pure directional Bitcoin positions toward strategies designed to generate additional returns that can withstand different market conditions.
The firm cited volatility changes and ETF flow fluctuations as contributing factors influencing institutional portfolio strategies.
The company stated that the Sygnum BTC Alpha Fund is intended to meet the demand of investors seeking yield within a regulated, institutional-grade structure. Sygnum added that the fund provides diversified exposure to cryptocurrency markets through a Bitcoin-focused strategy.
