Two MAS-regulated Bitcoin funds launch in Singapore

Published at: Nov. 26, 2021

Singapore-based fund manager Fintonia Group has launched two institutional-grade Bitcoin (BTC) funds approved by the Monetary Authority of Singapore (MAS).

The new funds, the Fintonia Bitcoin Physical Fund and the Fintonia Secured Yield Fund, are intended to provide simple and secure exposure to Bitcoin for professional investors, Fintonia announced on Nov. 25.

The Fintonia Bitcoin Physical Fund targets institutional investors seeking direct exposure to Bitcoin, allowing them to buy, store and sell large amounts of the cryptocurrency. “The fund acquires physical Bitcoin, meaning we will buy the actual Bitcoin rather than a derivative instrument on Bitcoin,” Fintonia founder and chairman Adrian Chng reportedly said.

The Fintonia Secured Yield Fund, on the other hand, provides investors with access to private loans secured by Bitcoin. “Bitcoin is an excellent form of collateral for loans. It trades 24/7 and is highly liquid, with approximately $30 billion to $60 billion per day. If required, it can be quickly liquidated in comparison with, for example, commodities and real assets,” Chng noted.

Both funds rely on a third-party licensed custodian storing clients’ cryptocurrencies on cold wallets. Investments are also insured against theft and hacking, the company said.

Fintonia aims to reduce crypto-to-fiat friction as a MAS-regulated fund manager that complies with Know Your Customer and Anti-Money-Laundering requirements. “These open-ended funds provide professional investors with a recognized legal and regulatory structure, similar to that of a typical mutual fund,” the announcement reads.

MAS and Fintonia did not immediately respond to Cointelegraph’s request for comment.

Related: Singapore to position itself as global crypto center, says regulator

The news further reaffirms Singapore’s commitment to becoming a central global cryptocurrency hub as local regulators have issued multiple licenses to legalize crypto trading in the country. According to MAS managing director Ravi Menon, Singapore is putting “very strong regulation” to strengthen its position as the world’s crypto center.

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