Swiss digital asset bank Sygnum has launched a new investment vehicle designed to generate yield on Bitcoin without reducing investors’ exposure to its price movements.

The BTC Alpha Fund, developed in partnership with Athens-based Starboard Digital, uses arbitrage strategies to target net annual returns of 8%-10%, which are paid directly in Bitcoin.

The fund is domiciled in the Cayman Islands and caters to professional and institutional investors. By converting arbitrage gains into bitcoin, participants can increase the number of coins they hold while still benefiting from bitcoin’s long-term price appreciation. Sygnum said the product has already drawn strong interest from clients looking for institutional-grade yield options in digital assets.

The fund comes as institutional investor

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