Regulated Singapore firm launches two Bitcoin funds

Based in Singapore and regulated by MAS, Fintonia Group launched two institutional-grade Bitcoin funds, according to Fund Selector Asia.

Fintonia Bitcoin Physical Fund and Fintonia Secured Yield Fund are aimed at professional investors seeking exposure to the new asset class.

The Bitcoin Physical Fund directly purchases and stores the leading cryptocurrency on behalf of investors.

“The fund purchases ‘physical’ Bitcoin, not its derivatives,” said Adrian Chng, founder and chairman of Fintonia.

According to him, institutional investor demand for the asset is rising. However, many investors are concerned about security and are overwhelmed by the sheer number of exchanges.

“As a regulated MAS fund manager with strict standards, we can connect with several exchanges and various market makers, which allows us to find better prices and buy or sell large volumes,” said Chng.

The fund also enables transfers of fiat and digital assets, addressing the challenges involved in moving large sums into and out of the system, added the founder.

Secured Yield Fund provides direct loans collateralized by Bitcoin. Typical borrowers are traders, miners and companies with cryptocurrency on their balance sheets that need funds but are not prepared to sell the digital asset, said Chng.

“Bitcoin is an excellent form of collateral for loans. It trades 24/7 and is highly liquid, with an approximate daily trading volume of about $30 billion to $60 billion. If necessary, it can be sold quickly compared with, for example, exchange-traded commodities and real assets,” he stressed.

Chng expects that in the first year of operation both funds will reach three-digit figures in the millions of dollars.

To safeguard the cryptocurrency assets, the company works with a licensed and insured custodian that stores them in cold wallets.

Earlier Babel Finance opened its Singapore headquarters to attract traditional financial institutions and wealthy investors to the industry.

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