Sygnum, a global digital asset banking group, today announces the successful transition of its Yield Core AMC, a product that invests in yield-generating strategies in crypto, including lending, funding arbitrage and liquidity provision, into a Luxembourg Reserved Alternative Investment Fund (RAIF) structure. This evolution broadens the fund’s international distribution potential, enhances investor protection, and reinforces its already strong risk-return profile. 

This move, which has been accepted by 99% of existing investors, demonstrates robust trust in the strategy’s performance and Sygnum’s position as a pioneering digital asset investment manager. Yield Core boasts a 2-year Sharpe ratio of 2.7 that positions it as an ideal solution for professional and institutional investors seeking diversified yield sources. 

Institutional-grade setup and broadened access 
Yield Core’s transition to a Luxembourg RAIF structure marks a significant milestone in its development, responding to the growing demand for institutional-grade solutions in the digital asset space. By adopting the RAIF framework, Yield Core strengthens its governance and investor protection, granting proportional ownership of underlying assets and eliminating counterparty risk. The RAIF structure also facilitates broader international distribution to professional and institutional investors. 

The RAIF structure allows for future expansion into key international markets such as Singapore, offering further growth opportunities. With nearly USD 30 million in assets under management, the Crypto Yield Fund is poised to meet the growing demand for digital asset yield strategies in both the crypto and traditional finance spaces. 

“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,” said Markus Hämmerli, Head Liquid Strategies at Sygnum. “This move not only increases investor protection and convenience but also strengthens our international distribution, further demonstrating Sygnum’s commitment to leading shaping Future Finance innovation in the digital asset space.” 

“As the authorized AIFM, we are proud to support Sygnum in providing investors with a secure and regulated pathway into the virtual asset class,” says Stephan Edelmann, Managing Director of Hauck & Aufhäuser Innovative Capital. “Building on our more than three years of expertise in digital assets exposure, we have not only extended Luxembourg’s well-established AIF structures to this innovative field, but we have also created a unique opportunity for investors to access this emerging asset class with confidence and compliance. The collaboration highlights the significance of such mandates in driving the growth and credibility of virtual assets in the broader financial landscape.” 

Meeting investor demand for alternative yield 
This transition also solves a key challenge faced by investors: how to access diversified crypto yield sources in a secure, trusted and institutionally recognised structure. The new RAIF format provides an attractive alternative to traditional fixed income and market-neutral investment strategies, particularly in today’s uncertain macroeconomic environment, offering investors an attractive and diversified source of returns.  

Crypto strategies cannot currently be structured within a UCITS framework, but the RAIF format allows Yield Core to be highly flexible and cater to a wide range of investors. Luxembourg’s RAIF structure offers a regulatory and operational framework that aligns perfectly with the needs of professional investors seeking exposure to alternative assets. 

Positioned for long-term growth 
The transition into a Luxembourg RAIF also places Yield Core at the forefront of an emerging market segment, providing access to diversified return sources beyond traditional fixed income. As investors increasingly seek alternatives to navigate geopolitical risks and volatile markets, Yield Core’s institutional-grade setup and proven track record will continue to attract a growing base of institutional clients, including family offices, treasuries, and crypto-native investors. 

Yield Core is now available to professional and institutional investors, Investors can subscribe through Sygnum Bank or other custodial banks, with additional distribution in select jurisdictions anticipated in the near future. .