Key Takeaways
- • Syz Capital, the alternatives investment arm of Switzerland's family-owned Syz Group, has launched the Capital Bitcoin Alpha Fund, a fund of crypto hedge funds with Coinbase as prime broker and custodian.
- • The fund launches with approximately 2,000 BTC, around $180 million according to the publisher's conversion.
- • The strategy targets volatility, market inefficiencies and fragmented liquidity to deliver low-volatility, uncorrelated returns denominated in bitcoin.
- • The fund follows the 2023 launch of SyzCrest, a Bitcoin-denominated market-neutral fund that Syz cites as having delivered 20% annualised gross returns with 6% volatility over a 20-month track record.
Summary
Switzerland-based Syz Capital, the alternatives investment arm of the family-owned Syz Group, has launched the Capital Bitcoin Alpha Fund, according to Funds Europe. Coinbase will serve as prime broker and custodian for the vehicle, which is structured as a fund of crypto hedge funds.
The fund launches with approximately 2,000 BTC, or around $180 million. It aims to exploit volatility, market inefficiencies and fragmented liquidity across digital asset markets in order to generate low-volatility returns that are uncorrelated with traditional assets. Returns are denominated in bitcoin, positioning the product for bitcoin holders and corporates.
The launch follows Syz's 2023 introduction of SyzCrest, a Bitcoin-denominated, market-neutral fund that Syz Capital says is intended to lead innovation in the digital asset space. Richard Byworth, Managing Partner at Syz Capital, said SyzCrest's 20-month track record of 20% annualised gross returns with 6% volatility underpins the new strategy's appeal to this investor base.
Byworth also explained the custodian selection, saying Coinbase, which he described as the top digital asset custodian for Wall Street ETFs, impressed the firm with its security protocols and its flexibility in creating governance structures, making it the clear choice.
The fund launches with approximately 2,000 BTC, or around $180 million. It aims to exploit volatility, market inefficiencies and fragmented liquidity across digital asset markets in order to generate low-volatility returns that are uncorrelated with traditional assets. Returns are denominated in bitcoin, positioning the product for bitcoin holders and corporates.
The launch follows Syz's 2023 introduction of SyzCrest, a Bitcoin-denominated, market-neutral fund that Syz Capital says is intended to lead innovation in the digital asset space. Richard Byworth, Managing Partner at Syz Capital, said SyzCrest's 20-month track record of 20% annualised gross returns with 6% volatility underpins the new strategy's appeal to this investor base.
Byworth also explained the custodian selection, saying Coinbase, which he described as the top digital asset custodian for Wall Street ETFs, impressed the firm with its security protocols and its flexibility in creating governance structures, making it the clear choice.
Go deeper than the headline
Research every firm in this story, track the ones that matter and get the daily briefing — free for 7 days.