Singapore-based financial services firm Fintonia Group has launched the first two institutional-grade bitcoin funds managed by a Monetary Authority of Singapore (MAS)-regulated fund manager, offering professional investors the opportunity to quickly and securely invest in this fast-growing institutional asset class.
The Fintonia Bitcoin Physical Fund targets professional investors looking for direct economic exposure to bitcoin. It solves four key challenges for investors – buying efficiently at scale, storing safely, selling efficiently at scale, and bequeathing bitcoin in a legally effective manner.
By investing via this fund, investors are able to easily navigate a “chaotic” cryptocurrency environment – one that has over 1,000 exchanges, significant challenges in transferring large amounts of cash in and out of the banking and crypto ecosystem, and the need to carefully manage fraud and hacking risks.
The Fintonia Secured Yield Fund is an open-ended fund that provides professional investors with access to private loans, which are secured by bitcoin. The fund generates best-in-class risk-adjusted returns as well as significant capital protection against price volatility. This allows professional investors to have indirect exposure to the growth of the cryptocurrency market and profit from the current “chaos” in the ecosystem.
“Singapore’s ambition to become a global cryptocurrency hub made launching here a natural choice,” says Adrian Chng, founder and chairman of Fintonia Group. “With a strong, yet open, regulatory framework, the country offers the ideal environment for us to contribute to the larger ecosystem by allowing professional investors to diversify their investments and take advantage of the rapid developments in the cryptocurrency space, all with a sense of security and trust.
“Bitcoin is an emerging institutional asset class that offers investors the potential for considerable profits, having seen approximately 100% return year to date and over 245% IRR [internal rate of return] since 2010. There will always be a significant portion of professional investors, particularly those with fiduciary duties, who cannot, and will not self-serve, given the considerable risks inherent in an inefficient and chaotic ecosystem.”
As an institutional investor and MAS-regulated fund manager that complies with stringent know-your-customer and anti-money-laundering requirements, Fintonia reduces the significant crypto/cash friction with exchanges, market makers and banks, while providing professional investors with a recognised legal and regulatory structure, similar to that of a typical mutual fund.
As well, all bitcoin assets are held by a third-party licensed custodian, leveraging cold storage and the latest security technologies, while also being insured against theft and hacking.