en.bitcoinsistemi.com
The giant Swiss cryptocurrency bank Sygnum Bank has taken an important step regarding Bitcoin ($BTC).
According to Coindesk, Sygnum Bank launched the $BTC Alpha Fund for its investors.
Accordingly, Sygnum launched the $BTC Alpha Fund, which allows investors to generate returns by holding Bitcoin without selling it.
This new Fund promises annual returns of 8-10% in Bitcoin by transforming stranded assets into larger investments using smart arbitrage and DeFi strategies. By converting arbitrage gains into Bitcoin, investors can increase their holdings without reducing their exposure to $BTC's long-term price appreciation.
Only 0.8% of Bitcoin's supply is currently used in DeFi, which equates to less than $6.5 billion of the approximately $1 trillion market. According to Sygnum, this suggests significant growth potential for Bitcoin-based yield products.
The fund targets professional and institutional investors and returns are paid in Bitcoin.
Markus Hammerli, head of the $BTC Alpha Fund, says the product has already seen significant interest. He also notes that every $1 billion inflow into Bitcoin ETFs could boost prices by 3-6% due to Bitcoin's limited supply and multiplier effect.
*This is not investment advice.