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MAS-Regulated Fund Manager Launches Two Bitcoin Funds in Singapore

A fund manager based in Singapore named Fintonia Group, which is subject to the regulation of the Monetary Authority of Singapore (MAS) has introduced two institutional-grade funds for Bitcoin (BTC). As per the announcement by Fintonia on Thursday, the names of the two funds are Fintonia Secured Yield Fund and Fintonia Bitcoin Physical Fund and the purpose of launching them is to provide professional investors with secure and simple exposure to Bitcoin. Chairman and founder of Fintonia, Adrian Chng said that the funds were now live and since they are open-ended, quite similar to how mutual funds operate, investors would be able to redeem and subscribe regularly. 

It was further revealed that only accredited investors could gain access to the two funds. The target audience of the Fintonia Bitcoin Physical Fund is institutional investors who are interested in getting direct exposure to Bitcoin. The fund will enable them to purchase, sell and store large amounts of the world’s largest crypto by market capitalization. Chng also stated that the fund will physically acquire the Bitcoin, which means that rather than getting a derivative instrument on Bitcoin, the company would actually buy the physical Bitcoin itself. 

As far as the Fintonia Secured Yield Fund is concerned, this one provides investors with access to private loans that are secured by the pioneer cryptocurrency. Chng highlighted that when it comes to loans, Bitcoin can be considered an excellent type of collateral because it is highly liquid and can be traded 24/7. Moreover, it has trading volumes of more than $30 billion to $60 billion on a daily basis. He said that if needed, it is possible to liquidate it quickly, as opposed to real assets and commodities. It is also important to note that both funds depend on a third-party licensed custodian that will have the responsibility of storing the cryptocurrencies of their clients on cold wallets. 

The company elaborated that they will also ensure the investments against hacking and theft. Since it is a fund manager that’s regulated by MAS, Fintonia intends to reduce any crypto-to-fiat friction. It can accomplish this goal because it complies with the Anti-Money Laundering and Knows Your Customer requirements. The announcement stated that these open-ended funds provided professional investors with a recognized regulatory and legal structure, which is often seen in a typical mutual fund. Launched in 2014, Fintonia Group is a regulated financial services firm that is focused on fintech. 

According to Chng, the company has been involved in crypto since its early days and is now especially focusing on these digital currencies because it has now become a separate asset class. This news is a further reaffirmation of the commitment of Singapore to become a global crypto hub, as multiple licenses have been issued by local regulators for legalizing crypto trading in the country. According to Ravi Menon, the MAS managing director, Singapore is coming up with strong regulations for strengthening its position as the crypto center in the world. This introduction of the two funds seems that it is approaching its goal. 

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