Kazakhstani company Fonte Capital has announced the launch of the first spot exchange-traded fund for Bitcoin in Central Asia — the Fonte Bitcoin Exchange Traded Fund OEIC (BETF). Trading of the fund’s shares began on August 13 on the Astana International Exchange (AIX) under the ticker BETF.
This is reported by Finway
Features of the BETF Fund and Storage Infrastructure
Each share of the newly created ETF is physically backed by Bitcoin, which is stored with the American custodian BitGo Trust. To enhance security, the fund’s assets are insured for up to $250 million, and cold offline storage and secure vaults are used for cryptocurrency storage. This system minimizes the risks of hacking or loss of digital assets.
The activities of the BETF fund are regulated by the Astana International Financial Centre (AIFC), which has established a legal framework for the placement of digital assets, the operation of licensed exchanges, custodians, and the launch of investment products.
Fonte Capital noted that BETF will provide investors with “a simple way to add Bitcoin to their portfolio while maintaining a high level of control and reliability.”
Impact of BETF Launch on the Kazakhstani Crypto Market
The launch of BETF marks another stage in the development of Kazakhstan’s cryptocurrency industry, which has been actively growing since the mining restrictions in China in 2021. With affordable electricity and clear regulatory conditions, the country has entered the top three global leaders in Bitcoin mining.
A key advantage of BETF is the direct ownership of Bitcoin, which reduces counterparty risks and allows the fund to more accurately track market price dynamics. The structure of BETF also provides for the possibility of physical settlements and maintaining low costs for investors.
Investors from Kazakhstan and other countries can now purchase shares of the fund on the AIX exchange without having to manage the storage of private keys or deal with cryptocurrency exchanges.
Kazakhstan is also implementing additional initiatives to legalize and develop crypto assets: legalizing the operation of crypto exchanges, creating experimental zones for transactions in digital currencies, developing a concept for a crypto reserve, and considering the possibility of investing virtual assets in a portion of the state gold and foreign exchange reserves.