Two MAS-regulated Bitcoin funds launch in Singapore

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

Fintonia announced the new funds on Nov. 25, the Fintonia Bitcoin Physical Fund as well as the Fintonia Secured Yield Fund. These new funds are designed to offer professional investors simple and secure exposures to Bitcoin.

The Fintonia Bitcoin Physical Fund is designed for institutional investors who want to have direct exposure to Bitcoin. It allows them to store, buy and sell large amounts. Adrian Chng, Fintonia’s founder and chairman, stated that the fund will acquire physical Bitcoin. This means we will purchase actual Bitcoin instead of a derivative instrument on Bitcoin.

Fintonia Secured Yield Fund provides investors access to Bitcoin-backed private loans. Bitcoin is a great collateral for loans. It can trade 24/7 and has a liquidity of approximately $30 billion to $60 trillion per day. It can be liquidated quickly if necessary, in comparison to, for example commodities or real assets,” Chng stated.

Both funds are held by a licensed third-party custodian who stores clients’ cryptocurrencies in cold wallets. The company stated that investments are protected against theft and hacking.

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. The announcement states that these open-ended funds offer professional investors a legal and regulatory structure similar to a mutual fund.

Cointelegraph reached out to Fintonia and MAS but they did not immediately reply.

Related: Singapore will position itself as a global crypto center, according to regulator

This news reaffirms Singapore’s determination to become a global cryptocurrency hub. Local regulators have granted multiple licenses to allow crypto trading to be legalized in Singapore. Ravi Menon, MAS managing director, said that Singapore has “very strong regulation” in place to consolidate its position as the global crypto center.