Sygnum’s Crypto Derivatives Trading Surges 500% in First Half of 2024
Switzerland’s Sygnum Bank, which specializes in cryptocurrencies, has reported a profit in the first half of 2024 due to increased trading volumes.
The specific figures of the income were not stated, however, the bank’s successful financial performance was linked with the launch of the first Bitcoin ETFs in the United States and the expectations of the approval of ETH ETFs. These changes have positively influenced the levels of trading activities and other aspects of business.
Crypto Trading and Derivatives Volume Jump
Looking at the first half of 2024, Sygnum’s spot crypto trading volume was twice as much as it was in the same period last year. This surge in trading activity was complemented by a 500% growth in the trading volumes of crypto derivatives. It also stated that there was a 360% increase in the volumes in lending that the bank handled.
This increase in turnover is mainly attributed to the launching of new ETF products and expectations of new ones, which have drawn in many professionals including private investors, external asset managers, and other institutional clients.
According to Martin Burgherr, the bank’s Chief Client Officer, these new investment products have led to the need for the ‘trusted and regulated access to digital assets’. Sygnum has found itself in a vantage position due to its regulated operations in several jurisdictions
Expansion of Staking Services and Client Base
Sygnum has also witnessed an increase in its staking-as-a-service offering with a 42% rise in staked ETH. Unlike Ether ETFs that are not allowed to incorporate staking by virtue of the positions taken by the SEC, Sygnum’s staking services provide clients with a valuable tool to obtain extra yield opportunities beyond the conventional ETF environment.
The bank is still growing its customer base, with more than 20 companies using its B2B services, including PostFinance, ZugerKB, LuzernerKB, and VZ Depotbank. By June of 2024, Sygnum has $4.5 billion in assets under management and has clients in almost 2000 from over 60 countries.
Expansion Strategies in Europe and Asia
Sygnum is already in the process of expanding its business within the European Union. Currently, the bank has already been operating in Luxembourg since 2022, and plans to obtain further licenses under the new MiCA laws that offer a single set of rules for the whole EEU including 27 countries. This licence is expected to be obtained by Sygnum by 2025 thus increasing its capacity in providing regulated services in the whole of EU and EEA.
Besides its European strategy, Sygnum is also looking towards Asia and plans to expand in Hong Kong. This was done in a bid of expanding the bank’s operations across the globe and to meet the demand of the regulated Cryptocurrency Financial Services across different parts of the globe.
This year, Sygnum closed a $40 million funding round with asset manager Azimut Holding, increasing the bank’s core equity capital to $125 million. This has been very crucial in the growth of Sygnum especially in the expansion strategies that the company has been undertaking.
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