Kazakhstan, one of the world’s largest bitcoin -mining, has become the location of Central Asia’s first spot Bitcoin
Exchange-Traded Fund (ETF).
Astana-based Fonte Capital said Fonte Bitcoin Exchange Traded Fund OEIC (BETF) begins to trade August 13 at Astana International Exchange (AIX). ETF will be priced in dollars.
Kazakhstan shot up at Bitcoin mining after China banned the industry in 2021 and pushed operations abroad. Kazakhstan benefited from his abundant cold electricity and favorable rules.
Unlike the exchange -traded notes, Betf Bitcoin has directly provided by the US regulated depotbitgo, which insures up to $ 250 million for possession. Bitgo uses offline cold storage and safe vaults – measures designed to reassure both institutional investors and retail buyers who are aware of hacks and counterparty risks.
The fund is regulated by Astana International Financial Center (AIFC)A jurisdiction, as its backers say, can protect assets from freezers associated with international sanctions while avoiding dependence on foreign issuers. AIFC has tried to build on this attitude by introducing a legal framework for digital assets, providing licensed exchanges, depot products and investment products to function within its jurisdiction.
Neighboring countries in Central Asia, such as Uzbekistan and Kyrgyzstan, have taken more cautious approaches, leaving Kazakhstan as the most open market for crypto investment in the region. For a country that wishes to diversify its financial sector, a regulated crypto product could draw foreign capital and integrate local markets into the wider digital active economy
ETF’s structure allows for in-frind settlements and aims to keep the total spending conditions low, while reducing tracking errors against the Bitcoin price.
Betf’s debut adapts Kazakhstan with a growing global list of jurisdictions – including the US, Canada and Hong Kong – who have approved Spot Bitcoin ETFs. In practice, this means that an investor in Almaty or London could buy shares in the fund through AIX without having to manage private keys or navigate crypto exchanges.
Fonte Capital, which registered with AIFC in 2022, administers diversified investment funds and said BETF will give investors a straightforward way to add Bitcoin to a portfolio while retaining “a high level of control and reliability.”
