Physical Bitcoin fund gets green light in Singapore


WAs the United States struggles to bring a spot bitcoin ETF to market, Singapore is advancing with a physical fund made up of the main cryptocurrency.

Bitcoin Magazine reports that Singapore-based fund manager Fintonia Group will offer a bitcoin and yield fund that will be government regulated courtesy of the Monetary Authority of Singapore (MAS) – the Singapore equivalent of the Securities and Exchange United States Commission (SEC). However, it looks like retail investors could be left behind as funds are more geared towards institutional investors.

This could certainly help appease critics who are skeptical of a bitcoin futures fund because it does not invest directly in the underlying asset. Many cryptocurrency purists would prefer to be directly exposed to the tokens of their choice rather than futures.

“The fund acquires ‘physical’ bitcoin, which means we will buy the actual bitcoin [rather than] a derivative instrument on bitcoin ”, noted Adrian Chng, founder and chairman of the Fintonia group.

“As a MAS regulated fund manager with strict standards, we can connect with multiple exchanges and different market makers, allowing us to find the best prices, as well as buy or sell in volume.” , added Chng. “The fund also allows efficient transfers of cash or cryptocurrencies, solving problems associated with moving large amounts of money into or out of the system.”

As for the yield fund, it would allow investors to access capital in order to buy bitcoin through direct loans. The fund is aimed at traders or even miners who want to get cash without having to sell their bitcoin holdings.

“Bitcoin is a great form of collateral for loans,” Chng reportedly said. “It trades 24/7 and is very liquid, at around $ 30 billion to $ 60 billion per day. If necessary, it can be quickly liquidated compared to, for example, commodities and real assets.

Become a global crypto hub

The green light from MAS is perhaps not surprising given that the country of Singapore aims to become a global cryptocurrency hub. It seems the government is taking a “go with the flow” approach unlike other countries like China which have banned some mining activities, forcing them to move elsewhere.

“We believe the best approach is not to crack down on or ban these things,” said Ravi Menon, director general of MAS, in a statement. Bloomberg article earlier this month.

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