Syz Capital, the $2bn investment arm of the family-owned Syz Group, has launched the Syz Capital BTC Alpha Fund, a new bitcoin-denominated fund of cryptocurrency hedge funds, with Coinbase acting as prime broker and custodian.
According to a press release, the fund aims to take advantage of market volatility, inefficiencies, and fragmented liquidity to deliver low-volatility, uncorrelated returns, and will build on the success of SyzCrest, which launched in 2023, aligning with Syz Group’s focus on innovation in digital assets.
Strategies include statistical arbitrage, futures basis trading, DeFi liquidity, and market making, all designed to deliver low-volatility, uncorrelated returns. It opens with around 2,000 BTC (approximately $180m).
This strategy is designed for bitcoin holders and corporates, leveraging SyzCrest’s record of 20% annualised returns with 6% volatility, said Richard Byworth, Managing Partner at Syz Capital.
The BTC Alpha Fund is targeting high single-digit annual returns with quarterly liquidity, focusing on low volatility – half the volatility of Syz’s USD-denominated fund at just 3%. The fund charges no management fees, only taking performance-based earnings, aligning the interests of Syz Capital and its investors. The minimum investment is 10 BTC.
Originally designed for Swiss-based bitcoin holders, the fund has attracted interest from corporate treasuries globally seeking reliable yield options. Syz Capital has selected 10 managers from over 300 global candidates.
The fund will hard close on 1 April 2025.
