Physical Bitcoin Fund Approved in Singapore
- Singaporean Fintonia Group has launched two bitcoin funds for professional investors.
- The Fintonia Bitcoin Physical Fund purchases actual bitcoin to provide investors with direct price exposure.
- The Fintonia Secured Yield Fund allows bitcoin holders to obtain cash by putting their BTC as collateral.
Singapore-based fund manager Fintonia Group, regulated by the Monetary Authority of Singapore (MAS), has launched a “physical” bitcoin fund and a yield fund, reported Fund Selector Asia. The offerings are geared towards professional and institutional investors seeking direct, passive bitcoin exposure and an avenue for obtaining loans on their BTC holdings.
“The fund acquires ‘physical’ bitcoin, meaning we will buy the actual bitcoin [rather than] a derivative instrument on bitcoin,” said Adrian Chng, founder and chairman of Fintonia Group, per the report.
The Fintonia Bitcoin Physical Fund aims to provide investors with “quick, safe, and cost-efficient” bitcoin exposure through a more convenient investment vehicle by purchasing and holding BTC directly. The manager said a “licensed and insured custodian” will hold the fund’s 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.”
The Fintonia Secured Yield Fund, on the other hand, aims to provide bitcoin holders with direct loans. Borrowers like traders, miners, and companies holding BTC can leverage the yield fund to access cash without selling their bitcoin.
“Bitcoin is an excellent form of collateral for loans,” Chng reportedly said. “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.”
Bitcoin funds provide an easy, hassle-free investment experience. Investors can obtain exposure to the price of BTC by purchasing the fund’s shares from their regular broker. However, convenience comes at a cost. Only by holding bitcoin directly will an investor be able to take advantage of the financial sovereignty and freedom enabled by the Bitcoin Network.