Swiss Crypto bank Sygnum posts profit after doubling crypto trading volumes
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Loading... - Bruce Stevens
- 29 Aug 2024
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Swiss crypto bank Sygnum has reported profitability after experiencing a significant surge in crypto trading volumes in the first half of 2024. With $4.5 billion in client assets, Sygnum saw its crypto spot trading volumes double and crypto derivatives trading increase by 500% compared to the same period in the previous year. Additionally, the bank's loan volume grew by 360%.
Chief Client Officer Martin Burgherr credited the bank’s financial gains to the approval of spot Bitcoin and Ether exchange-traded funds (ETFs) in the United States. "The approval and launch of Bitcoin and Ethereum ETFs were a watershed moment for the crypto sector this year, leading to a major increase in demand for trusted, regulated exposure to digital assets," Burgherr stated.
Sygnum offers its own suite of crypto-related exchange-traded products, including the Sygnum Platform Winners Index ETP, which holds large market cap coins like Bitcoin, Ether, Solana, Cardano, and Polkadot. The bank also noted a rise in the number of clients opting to stake their Ether through Sygnum’s staking-as-a-service, which now makes up 42% of all Ether held by the bank’s customers.
"For institutional clients, staking ETH presents a unique benefit beyond the limitations of the ETF framework, which currently excludes staking yields," Sygnum added, highlighting the appeal of staking as a value-added service outside the traditional ETF offerings.
