Swiss digital asset banking group Sygnum has transformed its Yield Core crypto fund into a Luxembourg Reserved Alternative Investment Fund (RAIF) structure, signaling a move towards institutional-grade crypto investments. The $30 million fund focuses on generating yield in cryptocurrency markets and has been approved by 99% of existing investors. By transitioning to the RAIF structure, the fund strengthens its governance framework and mitigates counterparty risk through direct asset ownership. The move also expands the fund's international distribution and offers increased investor protection. The fund employs market-neutral strategies such as lending, funding arbitrage, and liquidity provision in the crypto space. Sygnum's restructuring caters to the growing demand for regulated crypto investment vehicles, particularly among institutional investors. The company's assets under management have reached $4.5 billion, and derivatives trading volumes have increased by 500% in the first half of 2024. Sygnum recently obtained a cryptocurrency license in Liechtenstein, enabling it to offer regulated digital asset services, including brokerage, custody, and banking. The company is also positioned to pursue a Crypto-Asset Service Provider license under the EU's Markets in Crypto-Assets Regulation in the future.



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