Swiss Sygnum Bank Achieves Profitability Amid Surging Crypto Demand

Sygnum Bank, a leading Swiss cryptocurrency bank managing $4.5 billion in client assets, has announced a significant milestone—reaching profitability. This achievement follows a surge in crypto trading volumes during the first half of 2024.

According to a statement released on July 25, the bank experienced a two-fold increase in crypto spot trading volumes and a staggering 500% surge in crypto derivatives trading compared to the same period last year. Additionally, loan volumes saw a 360% spike.

ETF Approval: A Major Driver

Martin Burgherr, Sygnum Bank’s Chief Client Officer, credited the impressive gains to the recent approval and launch of spot Bitcoin and Ethereum exchange-traded funds (ETFs) in the United States. “The approval of Bitcoin and Ethereum ETFs […] led to a major increase in demand for trusted, regulated exposure to digital assets,” Burgherr stated.

He explained that this rising demand has primarily contributed to Sygnum’s robust growth across its core business areas.

Notably, since launch, Bitcoin spot ETFs have garnered $17.5 billion in net inflow, as per the SoSoValue data. These products have a total net assets of $60.11 billion.

Katalin Tischhauser, Sygnum’s Head of Investment Research, stated that she expects a strong demand over the next 12 months from traditional institutional investors.

Sygnum Bank’s Own ETPs

Sygnum Bank offers a variety of its own crypto-related exchange-traded products (ETPs), including the Sygnum Platform Winners Index ETP. This product includes Bitcoin, Ether, Solana, Cardano, Polkadot, and other high market cap coins. 

As per the announcement, Sygnum’s clients are also choosing to stake their Ether through its staking-as-a-service offering, which now accounts for 42% of all Ether held by Sygnum customers. The bank highlighted that for institutional clients, staking ETH offers benefits beyond the limitations of the ETF framework.

Looking Ahead

Sygnum Bank is eyeing further expansion in the future. After a $40 million capital raise in January that valued the bank at $900 million, Sygnum is now setting its sights on the European market. The bank aims to become fully compliant with the European Union’s new Markets in Crypto-Assets Regulation (MiCA) by the first quarter of 2025.

Although Switzerland is located in Europe, it is not a member of the European Union and therefore not bound by MiCA. In January, the Swiss Financial Market Supervisory Authority, also known as FINMA, approved a new trading platform for retail investors to allow them trade tokenized securities and digital assets.