Singapore’s Monetary Authority of Singapore (MAS) has greenlighted two Bitcoin-focused funds aimed at institutional investors.
To cater to the rising demand for digital asset funds, the Singaporean fund manager Fintonia Group has announced the launch of two institutional-grade funds tracking the performance of the world’s largest cryptocurrency.
Fintonia Bitcoin Physical Fund and the Fintonia Secured Yield Fund are the two new products offered by the financial services firm regulated by the Monetary Authority of Singapore (MAS).
Fintonia’s New Bitcoin Offering
According to the report, the two institutional-grade products essentially focus on professional investors exploring long-only, passive exposure to Bitcoin (BTC). The Fintonia Bitcoin Physical Fund is dedicated to institutional investors looking for direct exposure to the cryptocurrency.
It would enable this cohort of market players to purchase, store, and sell large amounts of BTC. As per Fintonia founder and chairman Adrian Chng, the fund in question “acquires physical Bitcoin.” This means that the firm will purchase the actual Bitcoin instead of a derivative instrument on the cryptocurrency.
On the other hand, the Fintonia Secured Yield Fund targets those investors who are looking for access to private loans secured by Bitcoin. Needless to say, Bitcoin is an asset that has not only managed to capture the imagination of investors, both big and small but has also positioned itself as an excellent form of collateral for loans. While citing some of its features such as 24/7 trading and high liquidity, the exec added,
“If required, it can be quickly liquidated in comparison with, for example, commodities and real assets.”
Besides, it is important to note that the two funds depend on a third-party licensed custodian storing users’ crypto-assets on cold wallets. In this way, Fintonia aims to insure clients’ crypto investments against potential theft and hacking.
A Triple-Digit Million Score?
Fintonia is optimistic about the latest launch and expects both Bitcoin funds to hit “triple-digit millions” within the first year itself. Considering the current market scenario of increasing investor appetite for Bitcoin and crypto in general, Fitonia’s target may come true.
Additionally, the sentiment around digital asset funds dedicated to Bitcoin (BTC) and Ether (ETH) has remained unfazed despite the slew of corrections, according to CoinShares.
The weekly inflows for crypto investment products, including exchange-traded funds (ETFs), increased to $154 million for the week ending November 20. In short, institutional investors do not seem particularly concerned about the pullbacks in the market. Instead, they are exploring more ways to engage with Bitcoin safely and effectively.