Sygnum has rolled out the ETH Alpha Fund SP, a market-neutral investment vehicle designed for professional participants that targets yearly returns between 8% and 10% denominated in ETH, after accounting for fees.
This vehicle merges fundamental ETH staking with options income, cross-platform arbitrage, as well as derivatives carry and funding techniques, ensuring that all profits and losses are settled in ETH instead of fiat currency.
“Institutions that maintain long-term positions in ETH increasingly evaluate their holdings in ETH rather than USD, measuring their annual success by whether they finish the period with a larger balance,” explained Markus Hammerli, head of asset management and leader of the ETH Alpha Fund at Sygnum. “We designed this fund around that exact benchmark, integrating in-kind revenue approaches alongside staking while maintaining the protections of a regulated framework.”
The fund started accepting capital on November 2, 2026, and remains open to qualified and professional clients across permitted jurisdictions, such as Switzerland. Enterprise clients may additionally secure ETH exposure via spot ether ETFs.
Staking on Ethereum grew to 43.8 million ETH, which represents close to 36% of the total circulating supply, by the conclusion of September, whereas typical annualized staking returns dropped to 2.63%.
Thomas Brunner, who leads custody and staking at Sygnum Bank, touched upon institutional demand for ETH staking alongside the rising significance of staking payouts for long-term ETH investors during a July interview with The Block.
“Practically nobody is withdrawing their staked assets, which signals authentic confidence,” Brunner stated back then. “The activation queue reflects operational mechanics just as much as it reflects actual demand.”
Originally published at https://www.theblock.co/news/business/2026-11-12-sygnum-eth-alpha-fund-staking-yields-options-arbitrage-438386.
