Sygnum has introduced the ETH Alpha Fund SP, a market-neutral investment product designed for qualified and professional investors aiming to expand their Ethereum positions. The fund targets annual returns of 8% to 10% denominated in ETH after fees and opened to investors on November 2, 2026.

Conventional Ethereum staking currently delivers roughly 2% to 3% in annual protocol rewards. The new fund seeks higher results by layering additional income strategies on top of native staking while measuring all gains and losses in ETH rather than dollars.

Strategy Combines Staking With Trading Approaches

Core holdings remain staked natively through Sygnum to collect protocol rewards. The fund then adds options premiums, cross-venue arbitrage, and derivatives carry and funding-rate strategies. Research materials also reference statistical arbitrage and volatility arbitrage as components of the approach.

These trading elements are presented as market-neutral, meaning their expected returns do not depend primarily on directional moves in Ethereum’s price. Investors nevertheless retain full exposure to ETH market price fluctuations because the fund itself is denominated in the cryptocurrency.

A decline in the dollar value of ETH can reduce the fiat value of an investor’s holdings even if the fund successfully increases the number of ETH tokens held.

Structure, Access and Custody Arrangements

Sygnum Asset Management, a unit of Sygnum Bank AG’s Investment Solutions department, manages the fund. It is structured as a Cayman Islands segregated portfolio company with Sygnum Bank acting as custodian.

Trading collateral is held through Sygnum Protect, the bank’s off-exchange custody service. Assets remain at the regulated bank while managers execute strategies on supported venues, reducing direct exchange counterparty exposure.

The minimum subscription is $100,000 or the equivalent amount in ETH. Subscriptions occur monthly with short notice periods. Redemptions are available monthly subject to longer notice and an investor-level gate of up to 10%.

Eligible participants are limited to qualified and professional investors in approved markets, including Switzerland. The product carries risks linked to derivatives, staking, liquidity, counterparties, trading systems and the use of leverage in certain strategies.

Second Alpha Product After Bitcoin Fund

The ETH Alpha Fund is Sygnum’s second such vehicle. In October 2025 the bank launched the Starboard Sygnum BTC Alpha Fund in partnership with Starboard Digital. That product targets comparable 8% to 10% annual returns denominated in Bitcoin and employs arbitrage strategies alongside bitcoin exposure.

By late January 2026 the Bitcoin fund had raised more than 750 BTC, equivalent to approximately $65 million at the time, and recorded an annualized return of 8.9% in its first complete quarter. Longer track-record figures cited for related strategies extend back to early 2022.

Sygnum operates under a Swiss banking license and holds additional regulatory permissions in Singapore, Abu Dhabi, Luxembourg and Liechtenstein. The ETH fund responds to institutional demand for returns earned and distributed in the same digital assets that investors already hold.