Sygnum launches ETH Alpha Fund targeting 8% to 10% annual returns
Swiss crypto bank Sygnum has launched the ETH Alpha Fund SP, a market-neutral fund targeting annual returns of 8% to 10% measured in ether rather than dollars.
The fund measures returns in ETH rather than dollars, changing how investors evaluate performance. For institutions planning to hold ether long-term, the focus shifts from dollar value to whether they own more ETH than when they started.
Yield strategies
The fund combines multiple yield sources. The base layer is native ETH staking, with additional strategies including options premiums, cross-venue arbitrage, and derivatives carry and funding trades. These systematic approaches profit from pricing inefficiencies rather than directional bets.
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.
Fund structure
The ETH Alpha Fund is structured as a Cayman Islands segregated portfolio company with Sygnum Bank as custodian. The minimum investment is $100,000 or ETH equivalent, with monthly liquidity and notice periods. An investor-level gate of up to 10% limits withdrawals.
Sygnum previously launched a similar BTC Alpha Fund in October 2025, which raised over 750 BTC (approximately $65 million) by January 2026 and posted an 8.9% annualized return in its first quarter.
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