Singapore approves Bitcoin fund that trades physical BTC

[hugeblack]

Regulated by the Monetary Authority of Singapore (MAS), Fintonia has launched the Fintonia Bitcoin Physical Fund and the Fintonia Secured Yield Fund will buy ‘physical’ Bitcoin rather than a derivative instrument on Bitcoin as the physical fund aims to remove the challenge of buying from one of the thousands of exchanges:

“As an 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,” Chng said.

“The fund also enables efficient cash or crypto transfers, resolving the challenges around moving large amounts of cash in or out of the system.”

The good side is that they buy bitcoin and thus make it easier for big players to buy directly from them without going through the platforms.
Perhaps the problem is the intention of the Fintonia Secured Yield to provide direct loans to holders of Bitcoins.

Read more and source --> https://finance.yahoo.com/news/singapore-approves-bitcoin-fund-trades-143736863.html

[Jawhead999]

To address investors’ security and hacking concerns, the Bitcoin assets in the fund will be secured with a licenced and insured custodian with expertise in crypto/digital assets security and technology.

I think this is just only a gimmick, literally all exchanges will hire an security expertise but that's doesn't mean it can't be hacked. Rather than rely on single expertise, it will be better if they added bug bounty.

However at least this could save more newbies which often fall on fake or scam exchanges, but yet we can't protect them from ponzi and bitcoin doubler

[SFR10]

The good side is that they buy bitcoin and thus make it easier for big players to buy directly from them without going through the platforms.

You're right, but I have mixed feelings about the "insured custodian" part... I have limited knowledge about such services but I'm assuming there'll be added fees ^{[since we're dealing with big players here, that would probably result in significant fees]} and in addition to that, If something bad were to happen, how are they going to pay back those amounts ^{[e.g. its value/worth at the time of the purchase or something else]}?

Perhaps the problem is the intention of the Fintonia Secured Yield to provide direct loans to holders of Bitcoins.

They did mention not "rehypothecating the BTCitcoin collaterals" but that seems too good to be true!

[avikz]

Singapore was always favorable towards bitcoin and cryptos in general. So when Indian government banned banking services to crypto exchanges, the first Indian bitcoin exchange closed their operations in India and permanently moved to Singapore.

This is a good news because we have seen enough bitcoin based funds that uses derivatives which actually makes no impact on the crypto market. Since this is a physical fund, I see the impact coming to the crypto market - both positive and negative. But that's what we always wanted, to have a physically settled fund management around bitcoin.

[buwaytress]

The good side is that they buy bitcoin and thus make it easier for big players to buy directly from them without going through the platforms.

You're right, but I have mixed feelings about the "insured custodian" part... I have limited knowledge about such services but I'm assuming there'll be added fees ^{[since we're dealing with big players here, that would probably result in significant fees]} and in addition to that, If something bad were to happen, how are they going to pay back those amounts ^{[e.g. its value/worth at the time of the purchase or something else]}?

Perhaps the problem is the intention of the Fintonia Secured Yield to provide direct loans to holders of Bitcoins.

They did mention not "rehypothecating the BTCitcoin collaterals" but that seems too good to be true!

Yeah I don't know much about it myself but I'm sure it's going to end up as BitGo being their licensed, insured custodian. There really isn't anyone else as good or as insured. This doesn't really mean much for them though, it only gives them the best of what's available.

My guess: Fintonia wants to be the Southeast Asian NEXO. Do OTC trading for up and coming whales, while deriving physical BTC from lenders, and paying them interest from the fees they'll charge to the buyers.

Note that NEXO, via Bitgo and insurers, already have ~$350 million insurance coverage but that doesn't even cover 1% of total assets under management.