Fintonia Group, a Singapore-based fund manager regulated by the Monetary Authority of Singapore (MAS), has launched two institutional Bitcoin funds (BTCs).
Fintonia announced Thursday that the new funds, Fintonia Bitcoin Physical Fund and Fintonia Secured Yield Fund, are designed to provide easy and secure access to Bitcoin for professional investors.
“The funds are active and investors can subscribe and buy back regularly because they are open-ended funds, similar to a stock fund. The funds are only available to accredited investors,” Fintonia founder and CEO Adrian Chng told Cointelegraph.
Fintonia Physical Bitcoin Fund is for institutional investors who are seeking direct access to Bitcoin so that they can buy, store and sell large amounts of cryptocurrency. “The fund is physically acquiring bitcoin, which means we want to buy real bitcoin, not a bitcoin derivative,” Cheng said.
On the other hand, Fintonia Secured Yield Fund gives investors access to private loans backed by bitcoin. “Bitcoin is a great form of collateral for loans. It sells 24/7 and is highly liquid, roughly $30 billion to $60 billion a day. If needed, it can be quickly liquidated compared to, for example, real commodities and assets.” Zhang noted.
Both funds rely on a licensed third-party custodian that stores clients’ cryptocurrencies in cold wallets. According to the company, the investments are insured against theft and burglary.
Fintonia is committed to reducing the friction between cryptocurrency and securities as a MAS regulated fund manager that meets KYC and anti-money laundering requirements. “These open-ended funds provide professional investors with a recognized legal and regulatory framework, similar to a typical equity fund,” she said.
Fintonia Group is a regulated financial services company founded in 2014 that specializes in financial technology. Chng says that Fintonia has been dealing with cryptocurrency since its early days and now specializes in cryptocurrency because it has “evolved into a separate asset class.”
MAS did not immediately respond to Cointelegraph’s request for comment.
On the topic: Singapore will position itself as a global cryptocurrency hub, says the regulator.
The news also confirms Singapore’s ambition to become a major global hub for cryptocurrency as local regulators have issued multiple licenses to legalize cryptocurrency trading in the country. According to Ravi Menon, CEO of MAS, Singapore is developing “very strict regulations” to solidify its position as a global cryptocurrency hub.