Singapore-based fund manager, Fintonia Group, has created the Fintonia Bitcoin Physical Fund and the Fintonia Secured Yield Fund. Fintonia is regulated by the Monetary Authority of Singapore (MAS). This offerings aims on bringing interest to Professional and institutional investors wanting direct, passive bitcoin exposure as well as a way to borrow against their bitcoin 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.
By purchasing and holding bitcoin directly, the Fintonia Bitcoin Physical Fund promises to provide investors with “rapid, safe, and cost-efficient” bitcoin exposure through a more convenient investment instrument. This will hence reduce the difficulty of buying via one of the thousands of exchanges. It will also keep the cryptocurrency secure.
“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.”
A “qualified and insured custodian,” with experience in crypto/digital asset security and technology will hold the fund’s bitcoin. According to the management, this will alleviate investors’ concerns about security and hacking.
Chng said that the funds are live and investors can subscribe and redeem regularly. This is because the funds are open-ended much like mutual funds. However, the funds are only available to accredited investors. The Physical Fund specifically targets institutional investors looking for direct exposure to Bitcoin. The fund will enable them to purchase, hold and sell the cryptocurrency in large bulks.
Access to Bitcoin-Backed Private Loans
The Fintonia Secured Yield Fund, on the other hand, promises to offer direct loans to bitcoin holders. Borrowers with bitcoin, such as traders, miners, and businesses, can use the yield fund to get cash without selling their bitcoin.
“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.”
Chng reportedly said
Bitcoin funds make investing simple and straightforward. By purchasing the fund’s shares from their usual broker, investors can gain exposure to the price of BTC. Convenience, on the other hand, comes at a price. Only by owning bitcoin directly will an investor be able to benefit from the Bitcoin Network’s financial sovereignty and freedom.
Chng believes a clear and solid regulatory framework in Singapore is likely to lead to more developments for the cryptocurrency ecosystem. Furthermore, funds and investment products will allow more professional investors to safely and effectively participate in Bitcoin.
This news reaffirms Singapore’s resolve to become a global cryptocurrency hub. Local regulators have awarded various licenses to legalize cryptocurrency trading in the country.
Singapore is developing “extremely tight regulation,” according to MAS managing director Ravi Menon, in order to strengthen its position as the world’s crypto center.