Sygnum Bank Reports Profitability Boost from Crypto ETF Approvals

Swiss crypto bank Sygnum Bank has reported profitability for the first half of 2024, largely due to a spike in trading volumes following the approval of Bitcoin and Ethereum ETFs in the U.S.

The bank saw its spot crypto trading volume double and experienced a dramatic 500% increase in derivatives trading.

Additionally, Sygnum’s lending business grew significantly, with Lombard loan clients nearly doubling and loan volumes expanding by over 360%. The bank attributes its success to improved trading capabilities, strategic partnerships, and a dedicated team of over 250 professionals.

Martin Burgherr, Sygnum’s Chief Client Officer, highlighted that the ETF approvals were crucial in driving increased demand for regulated digital asset exposure.

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The bank offers various crypto-related products and has seen a rise in Ethereum staking among its clients, now representing 42% of its ETH holdings.

Following a $41 million capital raise earlier this year, Sygnum, now valued at $900 million, is preparing to enter the European market and comply with the EU’s Markets in Crypto-Assets Regulation by early 2025.

The bank also plans to extend its regulated services to Asia-Pacific regions, including Hong Kong.

Alexander Stefanov