Swiss Bank Launches New Bitcoin (BTC) Fund! "Target: $1 Trillion Market!"
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.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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