Sygnum ETH Alpha Fund targets 8-10% annual returns paid in ETH

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Sygnum announced the Sygnum ETH Alpha Fund SP on November 12, 2026, targeting annual returns of 8-10% in ETH, net of fees, for professional investors seeking to grow their holdings beyond staking. The market-neutral fund opened to investors on November 2, 2026, and measures its results in ETH rather than dollars.

Summary

Key takeaways

• The fund targets ETH returns above the 2-3% annual staking benchmark cited by Sygnum.
• Staking is combined with options income, arbitrage and derivatives strategies.
• Sygnum Protect holds trading collateral off-exchange at a regulated bank.

Sygnum’s ETH Alpha Fund targets returns in coins, not dollars

The fund is denominated in ETH and uses market-neutral strategies to pursue its return target. Sygnum designed it for long-term holders who want to increase their ETH balance without selling their holdings or converting income into fiat currency.

In its launch statement, Sygnum described staking rewards of around 2-3% a year as the standard return on institutional ETH holdings. It said corporate treasuries and exchange-traded funds now rank among the largest ETH stakers.

“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,” said Markus Hämmerli, Sygnum’s Head of Asset Management and ETH Alpha Fund lead.

Staking forms the base for three additional return sources

The Sygnum ETH Alpha Fund combines native staking with options premiums, arbitrage between trading venues, and derivatives carry and funding rates. Its core holdings remain staked with Sygnum to earn protocol rewards.

Each additional strategy has a different return driver. Options generate premium income, cross-venue arbitrage seeks to capture pricing differences between exchanges, and derivatives strategies draw on carry and funding payments.

Sygnum said the underlying managers already operate these strategies in other currencies, including USD. Fund research materials also identify statistical arbitrage and volatility arbitrage as part of the investment mix.

ETH payouts and off-exchange collateral

Returns are earned and paid in ETH, while all profit and loss is realized and reported in the same asset. The structure aims to increase investors’ coin holdings rather than turn the proceeds into dollar-denominated yield.

Trading runs through Sygnum Protect, with collateral held off-exchange at a regulated bank. Sygnum pairs that custody arrangement with a disciplined risk-management framework.

Sygnum Asset Management, a unit within Sygnum Bank AG’s Investment Solutions department, oversees management of the fund. Research materials describe a Cayman Islands segregated portfolio company structure and identify Sygnum Bank as custodian.

Professional investors face defined access and liquidity terms

Qualified and professional investors in approved markets, including Switzerland, can access the fund. Sygnum positions it for professional and institutional participants and describes its subscription and redemption terms as attractive.

Fund research materials specify a $100,000 minimum investment, or the equivalent in ETH. They also describe monthly liquidity with notice periods and an investor-level redemption gate of up to 10%.

A second alpha fund within Sygnum’s regulated business

The ETH product is Sygnum’s second alpha fund, following the Starboard Sygnum BTC Alpha Fund launched in October 2025. That earlier vehicle was introduced in partnership with Starboard Digital.

Sygnum said the ETH Alpha Fund responds to demand for returns earned and paid in assets investors already hold. The group operates under a Swiss banking license and holds CMS and Major Payment Institution licences in Singapore.

Sygnum is also regulated in Abu Dhabi and Luxembourg and registered in Liechtenstein.

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Article produced with the assistance of artificial intelligence and reviewed by the editorial team.

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