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Sygnum’s Starboard BTC Alpha Fund delivered an 8.9% annualized return in the fourth quarter of 2025 while Bitcoin prices fell 25%, demonstrating growing institutional appetite for crypto strategies that generate yield independent of price direction.
The market-neutral fund attracted more than 750 Bitcoin from institutional investors within four months of its October 2025 launch, using arbitrage and relative-value strategies across spot and derivatives markets.
The rise of the market-neutral Bitcoin fund reflects a broader evolution in how institutions approach digital assets.
Rather than relying solely on long-term price appreciation, investors are increasingly looking for structured products that can deliver consistent returns while maintaining exposure to Bitcoin.
“As Bitcoin becomes a core portfolio allocation for institutional investors, we’re seeing growing demand for strategies that can generate returns beyond simple price appreciation,” — Markus Hämmerli, Head of Portfolio Management, Sygnum.
This shift comes as Bitcoin prices have faced notable pressure. According to CoinGecko data cited by Sygnum, Bitcoin fell roughly 25% between the fund’s October 2025 launch and the end of the year.
Despite that drawdown, the market-neutral Bitcoin fund was able to post positive returns, underscoring its appeal during periods of market stress.
Institutional allocators, particularly hedge funds and family offices, have increasingly emphasized capital efficiency and risk-adjusted returns.
In that context, a market-neutral Bitcoin fund offers exposure to crypto market infrastructure without requiring investors to take a strong bullish or bearish view on price direction.
Sygnum said the BTC Alpha Fund generates returns through arbitrage and relative-value strategies across spot and derivatives markets on centralized crypto exchanges.
These strategies aim to exploit temporary pricing inefficiencies rather than directional price moves.
“The fund’s investment objective is to outperform BTC,” the fund states on its official webpage, noting that it targets dislocations across instruments such as perpetual swaps, futures, options and spot markets.
“Main strategies driving the performance are leveraged carry trades and cross exchange arbitrage,” — Markus Hämmerli, Head of Portfolio Management, Sygnum.
In practice, this means the market-neutral Bitcoin fund simultaneously holds offsetting positions that reduce exposure to outright price movements.
Returns are generated from funding rate differentials, futures basis spreads and execution inefficiencies across venues.
Crucially for institutional investors, returns are accumulated in Bitcoin rather than paid out in cash.
Investors realize gains by redeeming shares at the fund’s net asset value, allowing the fund’s Bitcoin holdings to grow over time.
This structure preserves long-term exposure while still delivering yield, a key selling point for allocators seeking Bitcoin-denominated returns.
The Q4 performance of the market-neutral Bitcoin fund arrives amid a broader reassessment of crypto investment strategies.
After several cycles dominated by speculative inflows, institutions are increasingly emphasizing professional risk management and predictable outcomes.
“The fund’s Q4 performance demonstrates that professional Bitcoin management can deliver meaningful results even when spot markets are flat or declining,” — Markus Hämmerli, Head of Portfolio Management, Sygnum.
Nikolas Skarlatos, founder of Starboard Digital, which co-launched the fund with Sygnum, said generating yield on Bitcoin while retaining upside exposure remains a central challenge for institutional investors.
“The fund’s early results validate that institutional-grade Bitcoin yield strategies aim to generate 8–10% annual returns across market conditions,” — Nikolas Skarlatos, Founder, Starboard Digital.
For crypto investors, the emergence of products like a market-neutral Bitcoin fund signals a maturation of the asset class.
Rather than replacing traditional exposure, these strategies complement long-only holdings by offering downside resilience and steady returns.
As regulatory clarity improves and institutional infrastructure deepens, analysts expect demand for market-neutral Bitcoin fund structures to continue growing.
While such products do not eliminate risk, their ability to perform during drawdowns may make them a cornerstone allocation for investors seeking sustainable participation in the Bitcoin ecosystem.
In a market increasingly shaped by professional capital, the success of Sygnum’s market-neutral Bitcoin fund suggests that yield not just price has become a defining theme of the next phase of crypto adoption.
