Sygnum’s Crypto Yield Fund adopts Luxembourg RAIF structure to extend investor protection and global access to it’s market neutral strategy

  • New RAIF structure allows for proportional asset ownership and reduces counterparty risk of a structured product 
  • Sygnum’s Yield Core Fund, which captures market neutral yield-generating strategies in crypto, has demonstrated a strong Sharpe Ratio of 2.7, offering high risk-adjusted returns 
  • Nearly USD 30 million in assets under management, targeting professional and institutional investors 
  • Expansion into international markets, including Singapore, planned 
  • Ideal for investors seeking diversified crypto yield solutions in an institutionally recognised format 

Zurich/Luxembourg, 31th October, 2024 – Sygnum, a global digital asset banking group, today announces the successful transition of its Yield Core AMC, a product that invests in yield-generating strategies in crypto, including lending, funding arbitrage and liquidity provision, into a Luxembourg Reserved Alternative Investment Fund (RAIF) structure. This evolution broadens the fund’s international distribution potential, enhances investor protection, and reinforces its already strong risk-return profile. 

This move, which has been accepted by 99% of existing investors, demonstrates robust trust in the strategy’s performance and Sygnum’s position as a pioneering digital asset investment manager. Yield Core boasts a 2-year Sharpe ratio of 2.7 that positions it as an ideal solution for professional and institutional investors seeking diversified yield sources. 

Institutional-grade setup and broadened access 
Yield Core’s transition to a Luxembourg RAIF structure marks a significant milestone in its development, responding to the growing demand for institutional-grade solutions in the digital asset space. By adopting the RAIF framework, Yield Core strengthens its governance and investor protection, granting proportional ownership of underlying assets and eliminating counterparty risk. The RAIF structure also facilitates broader international distribution to professional and institutional investors. 

The RAIF structure allows for future expansion into key international markets such as Singapore, offering further growth opportunities. With nearly USD 30 million in assets under management, the Crypto Yield Fund is poised to meet the growing demand for digital asset yield strategies in both the crypto and traditional finance spaces. 

“Yield Core’s transition into the Luxembourg RAIF structure is an important step in our ongoing efforts to provide, amongst others, best-in-class crypto yield solutions to our growing investor base,” said Markus Hämmerli, Head Liquid Strategies at Sygnum. “This move not only increases investor protection and convenience but also strengthens our international distribution, further demonstrating Sygnum’s commitment to leading shaping Future Finance innovation in the digital asset space.” 

“As the authorized AIFM, we are proud to support Sygnum in providing investors with a secure and regulated pathway into the virtual asset class,” says Stephan Edelmann, Managing Director of Hauck & Aufhäuser Innovative Capital. “Building on our more than three years of expertise in digital assets exposure, we have not only extended Luxembourg’s well-established AIF structures to this innovative field, but we have also created a unique opportunity for investors to access this emerging asset class with confidence and compliance. The collaboration highlights the significance of such mandates in driving the growth and credibility of virtual assets in the broader financial landscape.” 

Meeting investor demand for alternative yield 
This transition also solves a key challenge faced by investors: how to access diversified crypto yield sources in a secure, trusted and institutionally recognised structure. The new RAIF format provides an attractive alternative to traditional fixed income and market-neutral investment strategies, particularly in today’s uncertain macroeconomic environment, offering investors an attractive and diversified source of returns.  

Crypto strategies cannot currently be structured within a UCITS framework, but the RAIF format allows Yield Core to be highly flexible and cater to a wide range of investors. Luxembourg’s RAIF structure offers a regulatory and operational framework that aligns perfectly with the needs of professional investors seeking exposure to alternative assets. 

Positioned for long-term growth 
The transition into a Luxembourg RAIF also places Yield Core at the forefront of an emerging market segment, providing access to diversified return sources beyond traditional fixed income. As investors increasingly seek alternatives to navigate geopolitical risks and volatile markets, Yield Core’s institutional-grade setup and proven track record will continue to attract a growing base of institutional clients, including family offices, treasuries, and crypto-native investors. 

Yield Core is now available to professional and institutional investors, Investors can subscribe through Sygnum Bank or other custodial banks, with additional distribution in select jurisdictions anticipated in the near future. .

ENDS

About Sygnum Asset Management 
Sygnum Asset Management delivers cutting-edge, institutional-grade investment solutions, leveraging deep research into the key drivers of digital asset markets. Our expertise spans intelligent beta exposure, the selection and monitoring of leading external crypto managers, and direct venture capital investments, empowering our clients with access to new, diversified sources of return. 

We offer both ready-made products and bespoke solutions, managed by an interdisciplinary, experienced team with strong track records, transparent reporting, and an innovative approach to digital assets. With increasing assets under management, we continue to push the boundaries of traditional finance, helping investors unlock the full potential of the digital asset economy. 

About Sygnum
Sygnum is a global digital asset banking group, founded on Swiss and Singapore heritage. We empower professional and institutional investors, banks, corporates and DLT foundations to invest in digital assets with complete trust. Our team enables this through our institutional-grade security, expert personal service and a portfolio of regulated digital asset banking, asset management, tokenisation and B2B services.

In Switzerland, Sygnum holds a banking licence and has CMS and Major Payment Institution Licences in Singapore. The group is also regulated in the established global financial hubs of Abu Dhabi, Luxembourg and Liechtenstein. We believe that the future has heritage. Our crypto-native team of banking, investment and digital asset technology professionals are building a trusted gateway between the traditional and digital asset economies that we call Future Finance. To learn more about how Sygnum’s mission and values are shaping this digital asset ecosystem, please visit www.sygnum.com.

Media contacts
Dominic Castley, Chief Marketing Officer, Sygnum 
[email protected] | +41 58 508 21 01
Sygnum Bank AG, Uetlibergstrasse 134a, 8045 Zurich, Switzerland

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. When making an investment decision, you should either conduct your own research and analysis or seek advice from an expert. 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 and Sygnum expressly disclaims any and all liability that may be based on such information, omissions, or errors thereof. If nothing is indicated to the contrary, all figures are unaudited. 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 authorization 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. The information herein refers to products and services of Sygnum and therefore constitutes advertising according to Art. 68 of the Swiss Financial Services Act (“FinSA”). Nonetheless, this document contains only general material and does not consider the financial situation of any natural or legal person, nor does it provide any tax, legal or investment advice. In particular, this publication does not constitute (i) any advice or recommendation, an offer or invitation by or on behalf of Sygnum to purchase or sell any assets; (ii) an inducement or incitement to participate in any product, offering or investment; (iii) a prospectus or key information document according to Swiss laws and regulations; nor shall it be construed as such. Where applicable, the full offering documentation of the products mentioned in this publication (such as for example the prospectus, offering memorandum, key information document (Basisinformationsblatt) may be obtained free of charge at Sygnum Bank AG, Uetlibergstrasse 134a, 8045 Zurich, Switzerland and/or by contacting us at https://www.sygnum.com/contact/. Some of the products mentioned in this publication might not qualify as units of a collective investment scheme according to the relevant provisions of the Swiss Federal Act on Collective Investment Schemes (“CISA”), as amended, and are not licensed thereunder. Therefore, neither such products nor the issuer is governed by the CISA nor approved by the Swiss Financial Market Supervisory Authority FINMA (“FINMA”). Accordingly, for such products investors do not have the benefit of the specific investor protection provided under the CISA. These materials and this publication are for distribution only under such circumstances as may be permitted by applicable laws. They are not directed to, or intended for distribution to or use by, any person or entity who is a citizen or resident of or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or would subject Sygnum or its partners to any registration, licensing or other legal requirement within such jurisdiction. Unless explicitly stated otherwise, no action has been or will be taken by Sygnum or its partners that would permit a public offering or a distribution of the products or possession or distribution of any offering material in relation to the products in any jurisdiction where action for that purpose is required. No offers, sales, resales or deliveries of any products or distribution of any offering material relating to any products may be made in or from any jurisdiction except in circumstances which will result in compliance with any applicable laws and regulations, and which will not impose any obligation on Sygnum. Where applicable, if and to the extent Sygnum has registered its prospectus with a prospectus evaluation body or a regulatory authority, further reference regarding the applicable selling and transfer restrictions is made to such prospectus. These materials may include statements that are, or may be deemed to be, “forward-looking statements”. These forward-looking statements include, for example, the terms “believes”, “estimates”, “plans”, “projects”, “anticipates”, “expects”, “intends”, “may”, “will” or “should” or, in each case, their negative or other variations or comparable terminology, or by discussions of strategy, plans, objectives, goals, future events or intentions. Forward-looking statements may and often do differ materially from actual results. Forward-looking statements speak only as of the date they are made. Without prejudice to any requirements under applicable laws and regulations, Sygnum and each of the participating authorized participants expressly disclaims any obligation or undertaking to disseminate any updates or revisions to any forward-looking statements contained in these materials to reflect any change in expectations thereof or any change in events, conditions or circumstances on which any such forward-looking statement is based, whether as a result of new information, future developments or otherwise. These materials are not a complete statement of the markets and developments referred to herein. Where applicable, some figures may refer to past performances or simulated past performances and past performance is not a reliable indicator of future results. Some figures may be forecasts only and forecasts are not a reliable indicator of future performance. Investment decisions should always be taken in a portfolio context and make allowance for your personal situation and consequent risk appetite and risk tolerance. No reliance may be placed for any purpose on the information contained in these materials or its accuracy or completeness. None of the participating authorized offerors, authorized participants, or distributors or any of their respective directors, officers, employees, advisers or agents accepts any responsibility or liability whatsoever for or makes any representation or warranty, express or implied, as to the truth, accuracy or completeness of the information in these materials (or whether any information has been omitted from them) or any other information relating to Sygnum or associated companies, whether written, oral or in a visual or electronic form, and howsoever transmitted or made available or for any loss howsoever arising from any use of these materials or its contents or otherwise arising in connection therewith. 

Read next article

Local restrictions – Provision of cross-border services

It looks like you are using a computer with an IP address located outside of Switzerland.
If you are located in Switzerland, please click “Continue” to access the Sygnum Bank AG (Sygnum) website.

If you are not located in Switzerland, please read below.

This website and the information contained herein are addressed solely to persons residing or domiciled in Switzerland.

Sygnum is a regulated bank supervised by the Swiss Market Financial Authority (FINMA). The products and services on this website are authorised in Switzerland. Sygnum cannot promote its products and services in other countries where it is not authorised by the supervisory authority of that country to do so.

If you click on “Continue” to visit this website, you confirm that you have read and understood the above and you are visiting this website on your own initiative without any active promotion or solicitation from Sygnum.

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.

Security alert

Stay alert to fraudulent communications. Sygnum will never post messages on social media or private messaging applications regarding Sygnum banking access or logins. If you have concerns, contact us.

Close