Coinspeaker Swiss Neobank Sygnum Restructures Crypto Fund to Attract Institutional Clients
Sygnum, a major player in the digital asset banking sector, has restructured its Yield Core AMC fund into a Luxembourg-based Reserved Alternative Investment Fund (RAIF) structure, making it an attractive offering for hedge fund managers and investment companies.
According to an official announcement on Thursday, October 31, the transition is designed to meet the increasing demand from institutional investors for secure, yield-generating crypto investments. The RAIF structure enhances investor protection and streamlines international distribution while reinforcing the company’s reputation in the emerging economy.
Yield Core AMC Now Better Suited for Investors
Before the transition, the fund was better known for its investment in crypto yield strategies—including lending, arbitrage, and liquidity provision. However, by adopting the RAIF structure, Yield Core now offers increased governance and robust asset protection, reducing counterparty risk while allowing proportional ownership of underlying assets. The fund promises an enhanced framework with greater stability and transparency for large-scale investors.
According to Sygnum, the fund has garnered nearly $30 million in assets under management. However, with the transformation, it will be expanded into new markets, such as Singapore, to broaden its appeal to professional investors worldwide further.
“Yield Core’s transition into the Luxembourg RAIF structure is an important step in our ongoing efforts to provide, amongst others, best-in-class crypto yield solutions to our growing investor base. This move not only increases investor protection and convenience but also strengthens our international distribution, further demonstrating Sygnum’s commitment to leading the shaping of Future Finance innovation in the digital asset space,” Markus Hämmerli, a senior executive at Sygnum.
99% of Sygnum’s Customers Supports Fund Transition
The transition of Yield Core into RAIF structure received overwhelming support from Sygnum’s existing investors, with 99% approving the move. According to the neobank bank, the approval underscores strong confidence in its risk-return approach and Yield Core’s performance, boasting a Sharpe ratio of 2.7 over the past two years.
Hauck & Aufhäuser Innovative Capital, the Alternative Investment Fund Manager (AIFM), supported the move. The company partnered with the bank to oversee Yield Core’s compliance and regulatory aspects.
Commenting on the fund’s restructuring, Stephan Edelmann, the company’s managing director, said that through its partnership with Sygnum, the duo has created an opportunity for investors to gain exposure to the emerging asset class “with confidence and compliance”.
Sygnum said the fund is available directly on its platform for professional and institutional investors. It is also accessible through undisclosed custodial partners, with expanded distribution anticipated in select jurisdictions.
Institutional Investors Demand More Products Tailored to their Needs
Meanwhile, the restructuring of Yield Core AMC comes at a time when institutional demand for crypto investment products is on the rise, thanks to the launch of the Bitcoin and Ethereum exchange-traded funds (ETFs).
According to a survey conducted by EY-Parthenon, institutional demand for digital assets and crypto-related funds is at its peak, with 94% of surveyed respondents saying they are “long-term believers” in the industry. These same investors are demanding that service providers provide more institutional-focused capabilities to enable them to participate in the market.
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Swiss Neobank Sygnum Restructures Crypto Fund to Attract Institutional Clients