It has been reported that 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.
Adrian Chng, the founder and chairman of Fintonia, said:
"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."
However, 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."
The report said that the Fintonia Secured Yield Fund provides investors with access to private loans secured by Bitcoin.
Chng further said:
"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."
Likewise, both funds rely on a third-party licensed custodian storing clients’ cryptocurrencies on cold wallets. Investments are also insured against theft and hacking. 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.
The announcement read:
"These open-ended funds provide professional investors with a recognized legal and regulatory structure, similar to that of a typical mutual fund."
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.
Thus, according to MAS managing director Ravi Menon, Singapore is developing “very strong regulation” to strengthen its position as the world’s crypto center.