Swiss Digital Asset Bank Rinse has launched a new investment vehicle designed to produce yield in Bitcoin without reducing investors exposure to its price movements.
The BTC Alpha Fund, developed in partnership with Athens-based Starboard Digital, uses arbitration techniques to target the net annual return of 8%-10%, which is paid directly to Bitcoin.
The funds have been domicile with the Cayman Islands and caters with professional and institutional investors. By converting arbitrations to Bitcoin, participants can increase the number of coins they hold while still benefiting from long-term appreciation for bitcoin prices. Sygnum said the product gained strong interest from clients looking for institutional grade yield options on digital properties.
The funding will come as investors in the institution are looking to exceed only Bitcoin’s handling of their portfolio and use decentralized finances (DEFI) to generate more income from their BTC handles. Bitcoin Defi has gained popularity and has the potential to open a massive market, according to analysts.
Recently, Binance The aforementioned research That’s just ~ 0.8% of Bitcoin’s supply is currently used in Defi, indicating a potential for a big “unfinished opportunity.” In fact, last year, Julian Love said, a deal analyst at Franklin Templeton Digital Assets, said The chance can be as much as $ 1 trillion.
“Bitcoin has become a major exposure to modern portfolios, and many of our clients want to stay invested while still building their positions,” said Markus Hämmerli, who is leading the BTC Alpha Fund offer in the Sygnum.
Bitcoin’s liquidity
For investors, a practical feature is that new fund shares can be promised as collateral for US dollar Lombard loans in Sygnum. This setup allows the long-term Bitcoin holder to unlock liquidity for other investments without selling their crypto exposure.
Monthly liquidity and a strict risk of risk management are intended to give the funding flexibility while addressing volatility in digital markets. Collaboration also uses a starboard digital background in trading and risk management.
Sygnum expands Bitcoin offerings since launch Various initiatives Last year. The new fund adds to the growing suite of regulated products aimed at breaking traditional finance and crypto economy.
