Fintonia Group, a fund manager based in Singapore, has started a physical Bitcoin fund. Regulated by the Monetary Authority of Singapore (MAS), the group has its eyes set on institutional investors who need direct access to bitcoin exposure.
Fintonia Group will also give investors access to loans on their Bitcoin portfolio through the Fintonia Bitcoin Physical Fund. Clarifying that the offering is for real Bitcoin instead of access options, Founder and Chairman Adrian Chng said:
“The fund acquires ‘physical’ bitcoin, meaning we will buy the actual bitcoin [rather than] a derivative instrument on bitcoin.”
Chng also said that Fintonia Group connects with “multiple exchanges and different market-makers” to find the best prices that fit the desired volume. The Chairman added that the offering solves the problem of moving heavy amounts of cash into or out of the system, by helping institutions to quickly change between cash and crypto.
Furthermore, customers will have access to direct loans. Interested entities, including miners, traders, and other companies that have Bitcoin can use the yield fund, leveraging it for cash without disposing of their Bitcoin holdings. Chng said:
“Bitcoin is an excellent form of collateral for loans. It trades 24/7 and is highly liquid, with approximately $30bn to $60bn per day. If required, it can be quickly liquidated in comparison with, for example, commodities and real assets.”
Image Credits: Pixabay
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