Fintonia Group, a Singapore-based fund manager regulated by the Monetary Authority of Singapore (MAS), has launched two institutional-grade Bitcoin (BTC) funds.
The new funds, the Fintonia Bitcoin Physical Fund and the Fintonia Secured Yield Fund, are intended to provide simple and secure exposure to Bitcoin for professional investors, Fintonia announced on Thursday.
“The funds are live and investors can subscribe and redeem regularly as they are open-ended funds, similar to a mutual fund. The funds are only available for accredited Investors," Fintonia founder and chairman Adrian Chng told Cointelegraph.
The Fintonia Bitcoin Physical Fund targets institutional investors seeking direct exposure to Bitcoin, allowing them to buy, store and sell large amounts of the cryptocurrency. “The fund acquires physical Bitcoin, meaning we will buy the actual Bitcoin rather than a derivative instrument on Bitcoin,” Chng reportedly said.
The Fintonia Secured Yield Fund, on the other hand, provides investors with access to private loans secured by Bitcoin. “Bitcoin is an excellent form of collateral for loans. It trades 24/7 and is highly liquid, with approximately $30 billion to $60 billion per day. If required, it can be quickly liquidated in comparison with, for example, commodities and real assets,” Chng noted.
A spokesperson for MAS told Cointelegraph that Fintonia is registered with the authority to serve no more than 30 qualified investors and to manage assets not exceeding 250 million Singapore dollars ($183 million). None of the two funds is approved or endorsed by the MAS as they do not require approval from the regulator. "MAS has not approved any cryptocurrency funds to offer [their services] to retail investors," a MAS representative added.
Both funds rely on a third-party licensed custodian storing clients’ cryptocurrencies on cold wallets. Investments are also insured against theft and hacking, the company said.
Fintonia aims to reduce crypto-to-fiat friction as an MAS-regulated fund manager that complies with Know Your Customer and Anti-Money Laundering requirements. “These open-ended funds provide professional investors with a recognized legal and regulatory structure, similar to that of a typical mutual fund,” the announcement reads.
Fintonia Group is a regulated financial services firm founded in 2014 with a focus on fintech. Chng says that Fintonia has been involved in cryptocurrency since the early days and now specifically focuses on cryptocurrency, as it "has evolved into a separate asset class.”
The news further reaffirms Singapore’s commitment to becoming a central global cryptocurrency hub as local regulators have issued multiple licenses to legalize crypto trading in the country. According to MAS managing director Ravi Menon, Singapore is developing “very strong regulation” to strengthen its position as the world’s crypto center.
Disclaimer: This article was updated to reflect that Fintonia Group is regulated by Monetary Authority of Singapore, rather than the funds themselves.