Yield Strategy

BTCY generates yield through exposure to the Starboard Sygnum BTC Alpha Fund (SSBAF), a market-neutral arbitrage strategy.

​

Strategy Overview

The underlying strategy employs market-neutral arbitrage across cryptocurrency markets: The strategy is managed by Starmark Investment Management Limited (FCA-regulated) using the market-neutral approach developed and operated by Starboard Digital Strategies SA (Athens) since March 2021. The Starboard Sygnum BTC Alpha Fund (SSBAF) vehicle itself launched in October 2025. References to strategy experience prior to October 2025 relate to the manager’s operation of substantially similar market-neutral approaches and are not a representation of iBTCY or SSBAF performance. Past performance is not indicative of future results.

​

Portfolio Allocation

​

Yield Math

Net yield to investors flows through as follows:

​

Why Market-Neutral?

Market-neutral strategies aim to generate returns independent of market direction:

• Not dependent on BTC price going up
• Seeks to profit in both bull and bear markets
• Targets consistent returns with low volatility

This makes the strategy fundamentally different from lending or staking yields, which often correlate with market conditions.

​

Single Strategy Concentration

Why this choice: We deliberately chose concentration over diversification at launch. A single high-quality institutional yield source with:

• Regulated custody (FINMA-licensed Sygnum)
• Transparent reporting
• Genuine BTC-denominated returns

is preferable to spreading across multiple unproven or lower-quality strategies. Risk acknowledgment: Single-strategy concentration means performance depends entirely on SSBAF. If SSBAF underperforms, suspends, or closes, there is no diversification benefit. Future path: Additional yield sources may be added in the future, subject to meeting the same institutional standards and with advance notice to investors.

​

Leverage

While leverage is standard for arbitrage strategies and enables the target returns, it also amplifies potential losses. The strategy’s risk controls include:

• Position limits
• Stop-losses
• Daily risk monitoring

​

Yield Compression Risk

SSBAF’s returns come partly from basis trades, the spread between spot and futures prices. If crypto derivatives markets become more efficient over time, these spreads may compress. Historical basis spreads have ranged from 5-20% annualized. In some historical periods with compressed spreads, similar market-neutral approaches have reported positive returns. That is not a guarantee for SSBAF or iBTCY. A structurally lower basis would reduce SSBAF’s returns and, consequently, iBTCY’s yield.

---