Fintonia Group, a Singapore-based fund manager regulated by the Monetary Authority of Singapore (MAS), has launched two institutional grade Bitcoin funds (BTC).
Fintonia announced on Thursday that new funds, the Fintonia Bitcoin Physical Fund and the Fintonia Secured Yield Fund, are committed to providing easy and secure access to Bitcoin for professional investors.
«The funds are active, and investors can subscribe and buy back regularly, because these are open funds, which are similar to equity funds. These funds are only available to accredited investors, Fintonia founder and CEO Adrian Chng told Cointelegraph.
The Fintonia Bitcoin Physical Fund is aimed at institutional investors seeking direct access to bitcoin so that they can buy, store and sell large amounts of cryptocurrency. “The fund buys physical bitcoin, which means we are going to buy physical bitcoin, not a bitcoin derivative,” Cheng said.
On the other hand, Fintonia Secured Yield Fund gives investors access to private loans backed by bitcoin. “Bitcoin is a great form of collateral for loans. It is traded 24 hours a day, 7 days a week and is very liquid, from $ 30 billion to $ 60 billion a day. If necessary, it can be wound up quickly compared to, for example, real goods and assets ….
Both funds rely on a licensed third-party custodian who stores clients’ cryptocurrencies in cold wallets. The company said the investment is insured against theft and piracy.
Fintonia aims to reduce the friction between cryptocurrencies as a MAS-regulated fund manager that is KYC- and anti-money laundering compatible. “These mutual funds provide professional investors with a recognized legal and regulatory framework similar to a typical mutual fund,” the announcement states.
Fintonia Group is a regulated finance company founded in 2014 and specializes in financial technology. Chng says that Fintonia has been working with cryptocurrency since the first days and is now focusing on cryptocurrency as it “has developed into a separate asset class”.
MAS did not immediately respond to Cointelegraph’s request for comment.
On the subject: Singapore will position itself as a global cryptocurrency hub, says the regulator.
The news also confirms Singapore’s ambition to become a global cryptocurrency hub as local regulators have issued several licenses to legalize cryptocurrency trading in the country. According to Ravi Menon, CEO of MAS, Singapore is developing “very strict rules” to strengthen its position as a global cryptocurrency hub.