Singapore-based MAS-regulated finance company Fintonia Group has launched two institutional-grade bitcoin funds.
Fintonia Bitcoin Physical Fund and Fintonia Secured Yield Fund are for professional investors looking for opportunities to interact with a new asset class.
The Bitcoin Physical Fund buys and stores the first cryptocurrency directly for the benefit of investors.
“The fund is buying 'physical' bitcoin, not its derivatives,” said Fintonia founder and chairman Adrian Chng.
According to him, there is a growing demand for assets from institutional investors. However, many of them are concerned about investment safety and are confused about a large number of exchanges.
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“As a MAS regulated fund manager with strict standards, we can connect with multiple exchanges and various market makers, allowing us to find the best prices and buy or sell high volumes,” Chng said.
The fund also allows for the transfer of fiat and digital funds, solving the problems associated with moving large amounts in and out of the system, the founder of the company added.
Secured Yield Fund provides direct loans secured by BTC. Typical borrowers are traders, miners, and companies with cryptocurrency on their balance sheets, who need funds but are not ready to sell the digital asset, Chng said.
“Bitcoin is a great form of collateral for loans. It is traded 24/7 and is highly liquid, with an approximate trading volume of $30 billion to $ 60 billion per day. If necessary, it can be sold quickly in comparison, for example, with exchange commodities and real assets,” he stressed.
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Chng expects both funds to reach “triple-digit values” of millions of dollars in their first year of operation.
To ensure the security of cryptocurrency assets, the company cooperates with a licensed and insured custodian who stores them in cold wallets.