This article was first published on Fund Selector Asia.
The two products are run by a Monetary Authority of Singapore (MAS) regulated fund manager.
The Fintonia Bitcoin Physical Fund an and the Fintonia Secured Yield Fund are “institutional-grade” product that targets professional investors who are looking for long-only, passive exposure to bitcoin, according to a statement by Fintonia.
The physical fund aims to provide investors with “quick, safe, and cost-efficient” access to bitcoins while removing the challenge of buying from one of the thousands of exchanges and keeping the bitcoin secure, it said.
“The fund acquires ‘physical’ bitcoin, meaning we will buy the actual bitcoin [rather than] a derivative instrument on bitcoin,” Adrian Chng, founder and chairman of Fintonia Group told FSA.
Cryptocurrency is now a $3trn asset class, and there is increasing interest from institutional investors, according to Chng.
However, he found that investors are often concerned about the security when investing in bitcoin and are confused due to the large number of exchanges.
“As an MAS regulated fund manager with strict standards, we can connect with multiple exchanges and different market-makers, enabling us to find the best prices, as well as buy or sell at volume,” Chng said.
“The fund also enables efficient cash or crypto transfers, resolving the challenges around moving large amounts of cash in or out of the system.”
To address investors’ security and hacking concerns, the bitcoin assets in the fund will be secured with a licenced and insured custodian with expertise in crypto/digital assets security and technology.
The fund also hopes to overcome the difficulty of bequeathing by establishing a legal structure to enable the passing of shares to other parties, including an estate.
Read the full article on Fund Selector Asia.