To cater to the rising demand for digital asset funds, the Singaporean fund manager Fintonia Group has announced the launch of two institutional-grade funds tracking the performance of the world’s largest cryptocurrency.
Fintonia Bitcoin Physical Fund and Fintonia Secured Yield Fund are the two new products offered by the financial services company regulated by the Monetary Authority of Singapore (MAS).
Fintonia’s New Bitcoin Offering
According to the report, the two institutional-grade products essentially focus on professional investors exploring long-only, passive exposure to Bitcoin (BTC). The Fintonia Bitcoin Physical Fund is dedicated to institutional investors looking for direct exposure to the cryptocurrency.
This would allow this cohort of market players to buy, store and sell large amounts of BTC. According to the founder and president of Fintonia, Adrian Chng, the fund in question “acquires physical Bitcoin”. This means that the company will buy real Bitcoin instead of a cryptocurrency derivative.
On the other hand, the Fintonia Secured Yield Fund targets those investors who are looking for access to private loans secured by Bitcoin. Needless to say, Bitcoin is an asset that has not only managed to capture the imagination of investors, both big and small but has also positioned itself as an excellent form of collateral for loans. While citing some of its features such as 24/7 trading and high liquidity, the exec added,
“If necessary, it can be quickly liquidated compared to, for example, commodities and real assets.”
Besides, it is important to note that the two funds depend on a third-party licensed custodian storing users’ crypto-assets on cold wallets. In this way, Fintonia aims to insure clients’ crypto investments against potential theft and hacking.
A three-digit million score?
Fintonia is bullish on the latest launch and expects both Bitcoin funds to hit “triple-digit millions” in the first year itself. Given the current market scenario of a growing investor appetite for Bitcoin and crypto in general, Fitonia’s goal may come true.
Additionally, the sentiment around digital asset funds dedicated to Bitcoin (BTC) and Ether (ETH) has remained unfazed despite the slew of corrections, according to CoinShares.
Weekly entries for crypto investment products, including exchange-traded funds (ETFs), reached $ 154 million for the week ending November 20. In short, institutional investors don’t seem particularly concerned about market downturns. Instead, they are exploring other ways to engage with Bitcoin in a safe and efficient way.
