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Sygnum launches Ethereum fund targeting 8–10% annual ETH returns
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Nov 12, 2026
Swiss digital asset bank Sygnum has launched an Ethereum investment fund targeting annual returns of 8% to 10% in ETH, offering professional investors a way to earn more than conventional staking rewards.
According to the bank’s Thursday announcement, the Sygnum ETH Alpha Fund SP opened to investors on November 2 and combines Ethereum staking with options trading, arbitrage and derivatives strategies.
The fund measures gains and losses in ETH, with the target calculated after fees. However, the stated return remains an investment objective, not a guaranteed payout, and participants continue to face changes in Ethereum’s market price.
Sygnum targets 8–10% annual returns with new Ethereum fund
Sygnum developed the fund for qualified and professional investors who want to increase their Ethereum holdings without selling their existing exposure.
The bank estimates that conventional ETH staking currently generates annual rewards of approximately 2% to 3%. Its new product targets a higher return by combining staking income with trading strategies managed by specialist investment firms.
Unlike investment products that calculate performance in dollars, the ETH Alpha Fund records its profits and losses in Ethereum. Investors therefore measure performance by the amount of ETH held, even when the cryptocurrency’s dollar price changes.
Markus Hämmerli, Sygnum’s head of asset management and the fund’s lead, said institutional investors increasingly assess their Ethereum holdings in terms of the cryptocurrency itself.
He explained that the fund combines staking with income-generating strategies intended to increase the amount of Ethereum investors hold.
The fund is managed through Sygnum Asset Management, part of Sygnum Bank AG’s Investment Solutions department, and is available to eligible investors in approved markets, including Switzerland.
How Sygnum’s Ethereum fund plans to generate returns
The investment strategy begins with native Ethereum staking, through which ETH holders help secure the blockchain and receive protocol rewards.
Sygnum then adds options premiums, arbitrage between trading venues and income from funding rates and other derivatives positions.
Options strategies can generate premiums when traders sell contracts, while arbitrage strategies seek to capture pricing differences between markets. Derivatives funding strategies seek income from differences in financing costs or payments between trading positions.
The bank describes these trading approaches as market-neutral because their intended returns do not depend primarily on Ethereum prices rising.
However, the fund itself remains exposed to ETH price movements because its underlying investment is denominated in Ethereum.
Sources >> Sygnum launches Ethereum fund targeting 8–10% annual ETH returns
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