A MAS-regulated (Monetary Authority of Singapore) fund manager, Fintonia Group, has recently launched a couple of institutional-grade Bitcoin funds — the Fintonia Bitcoin Physical Fund and the Fintonia Secured Yield Fund. This will provide professional investors a simple and secure Bitcoin exposure.
Adrian Chng, founder and chairman of Fintonia, said that the funds are live and investors can subscribe and redeem regularly due to them being open-ended much like mutual funds. However, the funds are only available to accredited investors.
The Fintonia Bitcoin Physical Fund specifically targets institutional investors looking for direct exposure to Bitcoin, enabling them to purchase, hold and sell the cryptocurrency in large bulks. Chng reportedly said that the fund acquires physical Bitcoin, which means that they are buying the actual Bitcoin and not the derivatives.
As for the Fintonia Secured Yield Fund, it provides 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,” said Chng.
These two funds are relying on a third-party authorised custodian that stores the clients’ crypto assets on cold wallets. The investments are also said to be insured against theft and hacking.