Singapore approves Bitcoin fund that trades physical BTC

Regulated by the Monetary Authority of Singapore (MAS), Fintonia has launched the Fintonia Bitcoin Physical Fund and the Fintonia Secured Yield Fund.

The physical fund aims to provide investors with “quick, safe, and cost-efficient” access to Bitcoin while removing the challenge of buying from one of the thousands of exchanges and keeping the Bitcoin secure.

Fintonia chairman Adrian Chng explained the fund acquires ‘physical’ Bitcoin, “meaning we will buy the actual Bitcoin rather than a derivative instrument on Bitcoin”.

“As an MAS regulated fund manager with strict standards, we can connect with multiple exchanges and different market-makers, enabling us to find the best prices, as well as buy or sell at volume,” Chng said.

“The fund also enables efficient cash or crypto transfers, resolving the challenges around moving large amounts of cash in or out of the system.”

To address investors’ security and hacking concerns, the Bitcoin assets in the fund will be secured with a licenced and insured custodian with expertise in crypto/digital assets security and technology.

Access to private loans secured by Bitcoin

Meanwhile, Fintonia Secured Yield Fund, intends to make direct loans to holders of Bitcoins.

In the long term, Chng believes a clear and strong regulatory framework in Singapore will likely lead to even more positive developments for the cryptocurrency ecosystem in the country, while funds and investment products will also open the doors for more professional investors to invest in Bitcoin safely and effectively.

The news reaffirms Singapore’s commitment to becoming a central global cryptocurrency hub as local regulators have issued multiple licenses to legalise crypto trading in the country.

According to MAS managing director Ravi Menon, Singapore is developing “very strong regulation” in order to strengthen its position as the world’s crypto centre.