Sygnum ETH Alpha Fund SP

Target additional ETH returns

The fund targets 8–10% annual net returns in ETH across the portfolio, combining staking rewards with systematic trading strategies. This is the total portfolio target, rather than an additional return on top of staking.

Maintain ETH price exposure

Investors retain exposure to ETH’s price performance while the trading strategies seek to generate market-neutral returns. The fund’s value in USD or another fiat currency remains sensitive to changes in ETH’s price.

Diversify sources of income

Different strategies respond to different market conditions. The portfolio combines arbitrage opportunities, derivatives funding income and options premium to reduce reliance on any single return source.

Key facts

Strategy Advisor​ Sygnum Bank AG
Strategy Yield on ETH
Legal Structure ​ Exempt comp. Segregated Portfolio Company
Swiss representation​ 1741 Group​
Domicile Cayman Island​
Custodian Sygnum Bank
Inception Date ​ 1 November 2026
Administrator​ NAV Consulting
Auditor KPMG, Cayman Island
Paying agent​ Founders Bank
Independent director​ Calderwood

Trading Information

Minimum ticket size​ $100k or equivalent in ETH
Subscription Monthly, 2 Business Day Notice
Redemption Monthly, 15 Calendar Day Notice
Trading currency​ ETH (USD Share Class available soon)
Investor Level Gate​ Up to 10%

Performance metrics

Annualised return since January 2022 18.34%
Cumulative return since January 2022 22.57%
Volatility, ann. 6.4%
Sharpe Ratio 2.21

Disclaimer: The information in this publication pertaining to Sygnum Bank AG (“Sygnum”) is for general information purposes only, as per date of publication, and should not be considered exhaustive. This publication does not consider the financial situation of any natural or legal person, nor does it provide any tax, legal or investment advice. This publication does not constitute any advice or recommendation, an offer or invitation by or on behalf of Sygnum to purchase or sell any assets. No elements of precontractual or contractual relationship are intended. While the information is believed to be from accurate and reliable sources, Sygnum makes no representation or warranties, expressed or implied, as to the accuracy of the information. Sygnum expressly disclaims any and all liability that may be based on such information, omissions, or errors thereof. Any statements contained in this publication attributed to a third party represent Sygnum‘s interpretation of the data, information and/or opinions provided by that third party either publicly or through a subscription service, and such use and interpretation have not been reviewed by the third party. Sygnum reserves the right to amend or replace the information, in part or entirely, at any time, and without any obligation to notify the recipient of such amendment / replacement or to provide the recipient with access to the information. Simultaneously, there is no obligation of Sygnum to inform recipients of information, if before provided information later becomes outdated, inaccurate or obsolete, unless otherwise provided by applicable law. The information provided is not intended for use by or distributed to any individual or legal entity in any jurisdiction or country where such distribution, publication or use would be contrary to the law or regulatory provisions or in which Sygnum does not hold the necessary registration, approval authorisation or license. Except as otherwise provided by Sygnum, it is not allowed to modify, copy, distribute or reproduce, display, license, or otherwise use any content for commercial purposes.

Objective

The Fund’s investment objective is to grow investors’ ETH holdings and outperform native ETH staking. The Fund seeks to generate consistent, risk-adjusted returns in ETH by combining native staking with complementary market-neutral strategies, using Ether (ETH) as the reference asset. These strategies seek to capture market inefficiencies and pricing dislocations through statistical arbitrage, volatility arbitrage, and funding-rate and cross-exchange arbitrage, while maintaining exposure to ETH price performance. 

Investment approach

The Fund generates returns from directional ETH exposure, native staking and systematic trading strategies, including statistical arbitrage, volatility arbitrage, and funding-rate and cross-exchange arbitrage. The strategies seek to generate largely market-neutral returns alongside staking income, while investors remain exposed to ETH price performance. Key risks include counterparty and custody risks from trading venues, staking and smart-contract risks, operational and technology risks linked to trading systems, liquidity risk in stressed markets, and potential losses from options positions during sharp market moves. Use of leverage in derivatives may also amplify potential losses.

Risk-/return profile

The Fund combines directional ETH exposure with native staking and a diversified overlay of market-neutral trading strategies. It aims to benefit from ETH price appreciation while growing investors’ ETH holdings through staking rewards and trading income, aiming to achieve significant returns.

What can investors expect

  • Continued ETH price exposure and returns measured in ETH 
  • Diversified income sources 
  • Institutional-grade infrastructure, custody and governance 
  • Monthly subscriptions and redemptions 

How to invest

Sygnum clients can invest via their Sygnum relationship manager. Institutional and private qualified investors can contact the Sygnum Asset Management team directly.

Investor qualification

The following content is available to qualified investors. Please confirm your details below to visit this page, or please see our other digital asset updates here.

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