The Monetary Authority of Singapore (MAS) has approved two new institutional-grade Bitcoin Funds issued by Fintonia, a leading asset manager. The two Bitcoin funds, The Fintonia Bitcoin Physical Fund and The Fintonia Secured Yield Fund, would provide institutional investors in the country with long-term exposure. The two new Bitcoin funds aim to simplify the process of purchasing BTC from various exchanges while also providing a safe way to invest.
The Fintonia Bitcoin Physical Fund would invest in physical Bitcoin and issue company shares in proportion to their Bitcoin holdings. The term “physical Bitcoin” refers to the company’s decision to purchase actual Bitcoins rather than invest in derivative products. Fintonia Group’s founder and chairman, Adrian Chng, stated,
“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. The fund also enables efficient cash or crypto transfers, resolving the challenges around moving large amounts of cash in or out of the system.”
The firm also promised unrivaled security, stating that the two new Bitcoin funds would store their assets with a licensed and insured custodian. Fintonia is one of Singapore’s leading asset managers, and its two funds are expected to grow by “triple-digit millions” in one year.
Fintonia’s Bitcoin Fund Will Make Loans
The Fintonia Secured Yield Fund, the second Bitcoin fund, promises to make direct loans to Bitcoin holders. The fund’s main goal is to provide monetary benefits to BTC holders without requiring them to sell their holdings.
“Bitcoin is an excellent form of collateral for loans. It trades 24/7 and is highly liquid, with approximately $30bn to $60bn per day. If required, it can be quickly liquidated in comparison with, for example, commodities and real assets.”
Singapore has recently emerged as a top destination for many crypto titans. Because the regulatory environment in the country appears to suit the needs of crypto service providers, companies such as Binance, Coinbase, and FTX want to expand their operations in the country.