Fintonia Group, a fund manager authorized by the Monetary Authority of Singapore (MAS), has introduced two institutional-grade Bitcoin (BTC) funds. The funds aim to provide simple and secure exposure to Bitcoin for professional investors.
Fintonia said on Thursday that two new funds, the Fintonia Bitcoin Physical Fund and the Fintonia Secured Yield Fund, will provide professional investors with simple and secure Bitcoin exposure.
“The funds are open-ended funds, similar to mutual funds, and investors can subscribe and redeem them on a regular basis.” Only accredited investors are eligible to invest in the funds “Adrian Chng, the founder and chairman of Fintonia, stated.
The Fintonia Bitcoin Physical Fund is aimed at institutional investors looking for direct Bitcoin exposure, allowing them to acquire, store, and trade huge amounts of digital currency.
“The fund gets physical Bitcoin, which means we will buy the actual Bitcoin rather than a Bitcoin derivative instrument,” Chng reportedly stated.
On the other hand, the Fintonia Secured Yield Fund gives investors access to private loans backed by Bitcoin. “Bitcoin is a fantastic kind of lending collateral.”
It is very liquid and trades 24 hours a day, with daily volumes ranging from $30 billion to $60 billion. In comparison to commodities and real estate, it can be swiftly liquidated if necessary,” Chng said.
Both funds rely on a licensed third-party custodian to store their clients’ cryptocurrency in cold wallets. According to the firm, investments are also protected against theft and hacking.
As a MAS-regulated fund manager that conforms with Know Your Customer and Anti-Money Laundering laws, Fintonia wants to decrease crypto-to-fiat friction.
The release adds, “These open-ended funds provide professional investors with a recognized legal and regulatory structure, similar to that of a traditional mutual fund.”
About Fintonia Group
Fintonia Group is a regulated financial services organization that focuses on fintech and was created in 2014.
Fintonia has been active with bitcoin since its inception, according to Chng, and now focuses only on it “has become a distinct asset class.”
Singapore’s resolve to become a central global cryptocurrency hub has been reaffirmed by the news, as local regulators have awarded various licenses to legitimize cryptocurrency trading in the country.
Singapore is developing “extremely strong legislation” to cement its position as the world’s crypto centre, according to MAS managing director Ravi Menon.