The Fintonia Bitcoin Physical Fund offers professional investors direct exposure and enables them to purchase actual Bitcoin. The Fintonia Secured Yield Fund allows Bitcoin holders to obtain cash by putting their BTC as collateral.
Singapore’s financial watchdog, the Monetary Authority of Singapore (MAS), has licensed Fintonia Group’s Fintonia Bitcoin Physical Fund and the Fintonia Secured Yield Fund. The products target professional and institutional investors seeking direct, passive Bitcoin exposure and an avenue for obtaining loans on their BTC holdings.
According to a report on the Fund Selector Asia, the physical fund aims to provide investors with will provide investors with “quick, safe, and cost-efficient” access to Bitcoin while removing the challenge of buying from one of the thousands of exchanges and keeping the Bitcoin secure. Fintonia founder and chairman Adrian Chng stated:
“The funds are live, and investors can subscribe and regularly redeem as they are open-ended funds, similar to a mutual fund. The funds are only available for accredited investors.”
Access to private loans secured by Bitcoin
Chng explained that the fund would enable efficient cash or crypto transfers, resolving the challenges around moving large amounts of cash in or out of the system. He said further that ‘to address investors’ security and hacking concerns, Fintonia Group will secure the Bitcoin assets with a licensed and insured custodian with expertise in crypto/digital assets security and technology. He added:
“As a 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.”
Financial sovereignty and freedom
As for the Fintonia Secured Yield Fund, the press release explained that it would offer investors access to private loans secured by Bitcoin. Chng explained:
“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.”
Bitcoin funds provide an easy, hassle-free investment experience. Investors can obtain exposure to the price of BTC by purchasing the fund’s shares from their regular broker. However, convenience comes at a cost. Only by holding Bitcoin directly will an investor be able to take advantage of the financial sovereignty and freedom enabled by the Bitcoin Network.
The Fintonia Group aims to reduce crypto-to-fiat friction as a MAS-regulated fund manager complying with Know Your Customer and Anti-Money Laundering requirements. The release stated:
“These open-ended funds provide professional investors with a recognized legal and regulatory structure, similar to that of a typical mutual fund.”