Singapore-based fund manager Fintonia Group has launched two institutional grade Bitcoin (BTC) funds approved by the Monetary Authority of Singapore (MAS).
The new funds, Fintonia Bitcoin Physical Fund and Fintonia Secured Yield Fund, are intended to provide simple and safe exposure to Bitcoin for professional investors, Fintonia announced on November 25.
The Fintonia Bitcoin Physical Fund targets institutional investors seeking direct exposure to Bitcoin, allowing them to buy, store, and sell large amounts of cryptocurrencies. "The fund acquires physical Bitcoin, which means that we will buy the actual Bitcoin rather than a Bitcoin derivative instrument," reported Fintonia founder and chairman Adrian Chng. said.
The Fintonia Secured Yield Fund, on the other hand, provides investors with access to private loans guaranteed by Bitcoin. โBitcoin is an excellent form of collateral for loans. It operates 24 hours a day, 7 days a week and is highly liquid, with approximately $ 30 billion to $ 60 billion per day. If necessary, it can be quickly liquidated compared to, for example, raw materials and real assets, โChng noted.
Both funds rely on a third-party licensed custodian who stores clients' cryptocurrencies in cold wallets. Investments are also insured against theft and piracy, the company said.
Fintonia aims to reduce the friction between crypto and fiat as a MAS regulated fund manager that meets Know Your Client and Anti Money Laundering requirements. "These open funds provide professional investors with a recognized legal and regulatory structure, similar to that of a typical mutual fund," the announcement reads.
MAS and Fintonia did not immediately respond to Cointelegraph's request for comment.
Related: Singapore to position itself as global crypto hub, says regulator
The news further reaffirms Singapore's commitment to becoming a global cryptocurrency hub as local regulators have done. issued multiple licenses to legalize crypto trading in the country. According to MAS Managing Director Ravi Menon, Singapore is implementing "very strong regulation" to strengthen its position as the world's crypto hub.
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