Sygnum launches ETH Alpha Fund targeting 8–10% returns in ether
What's the deal? Swiss digital asset bank Sygnum has launched the ETH Alpha Fund SP, targeting annual returns of 8–10% in ether after fees. The fund opened to investors on November 2 and is available to qualified and professional investors in approved markets, including Switzerland.
How it works: Core ETH holdings remain staked with Sygnum, while underlying managers layer on options premiums, cross-venue arbitrage, and derivatives carry and funding strategies. Gains and losses are realized and reported in ether, not dollars.
Why now? Institutional ETH holders have increasingly sought income beyond staking, whose current yield sits at roughly 2–3%. Sygnum's target roughly triples that by adding trading strategies on top of protocol-based rewards.
Markus Hämmerli, Sygnum's head of asset management and the fund's lead, said its intended investors measure success by whether they finish the year holding more ETH, rather than by dollar income.
The fine print: The fund lists a minimum investment of $100,000 or its ETH equivalent, with monthly subscriptions and redemptions. It is domiciled in the Cayman Islands within a segregated portfolio company structure, with Sygnum Bank as custodian and strategy adviser.
What could go wrong? The trading strategies seek market-neutral returns, but investors remain exposed to ether's price: an 8% gain in ETH still means a 13.6% dollar loss if ether falls 20%. Sygnum's risk disclosures flag trading-venue counterparties, custody, staking, and smart contracts as potential sources of loss.
The signal: The launch follows Sygnum's BTC Alpha Fund, which the bank says drew more than 750 BTC within four months and returned 8.9% annualized in Q4 2025. It marks a push toward regulated, in-kind yield products as institutions look to grow crypto holdings beyond staking — though a company-reported track record is no guarantee the ETH strategy will hit its target.
Read more: coinscreamer.com
Image credit: Sygnum
