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- Two Bitcoin funds has been introduced in Singapore by Fintonia Group
- The funds aim to provide simple and secure exposure to the flagship crypto asset for professional investors
- The Fintonia Bitcoin Physical Fund will amass real Bitcoins rather than derivative instruments
- Both Fintonia Bitcoin Physical Fund and the Fintonia Secured Yield Fund rely on a third-party custodian storing clients’s crypto assets on cold wallets
Bitcoin price’s attractive gains have forced several to seek exposure to the crypto asset. Singapore, the nation that is emerging as the blockchain and crypto hub, has witnessed two new BTC funds. Indeed, Fintonia Group, a Singapore based fund manager that is regulated by the Monetary Authority of Singapore has introduced two BTC funds. The funds aim to provide simple and secure exposure to the flagship crypto asset for professional investors. Moreover, these institutional-grade BTC funds are known as Fintonia Bitcoin Physical Fund and the Fintonia Secured Yield Fund.
Bitcoin funds for accredited investors
MAS-regulated fund manager of Singapore has established two new Bitcoin funds on Thursday. According to Fintonia Group, both the funds intend to provide simple and secure exposure to bitcoin for professional investors. Meanwhile, during the announcement, Adrian Chng, the founder and chairman of Fintonia Group underscored that the Bitcoin-based funds are live and investors can subscribe and redeem regularly as both of the funds are open-ended. Notably, such open-ended funds are similar to a mutual fund.
Moreover, Chng also underscored that the funds are only available for accredited investors. Indeed, the fund will allow institutional investors to buy, store, and sell large amounts of cryptocurrency. According to Chng, the fund acquires physical BTC, which means the firm will amass real Bitcoins rather than derivative instruments.
Get private loans secured by BTC
Besides, Fintonia Bitcoin Physical Fund, there is the Fintonia Secured Yield Fund. Notably, the other fund allows investors to access private loans secured by BTC. According to Chng, the flagship crypto asset is a robust form of collateral for loans. The asset trades 24/7 and is highly liquid with about $30 billion to $60 billion on a daily basis. Moreover, as per requirements BTC can be quickly liquidated in comparison with other commodities and real estate.
BTC funds rely on third-party custodians
It is also revealed that both Fintonia Bitcoin Physical Fund and the Fintonia Secured Yield Fund rely on a third-party custodian storing clients’s crypto assets on cold wallets. Hence, investing in these funds means funds are insured against theft and hacking.
Meanwhile, the fund manager also aims to reduce crypto-to-fiat friction. Fintonia is a MAS-regulated firm that follows Know Your Customer (KYC) and Anti-Money Laundering compliances. Hence, the Bitcoin funds will offer professional investors with a recognized legal and regulatory structure which is similar to that of a typical mutual fund. Moreover, Fintonia Group has been involved in crypto since the early days and now specifically focuses on digital assets as it has evolved into a separate asset class.
