tl;dr
Kazakhstan has launched Central Asia's first regulated crypto asset, the Fonte Bitcoin Exchange Traded Fund OEIC (BETF), trading on the Astana International Exchange. The fund secures bitcoins in cold wallets managed by U.S.-based BitGo Trust, ensuring security and low fees. Investors can buy shares...
One of Central Asia's seven countries has made a landmark achievement by launching the region’s first regulated crypto asset. Kazakhstan, through Fonte Capital in Astana, has introduced the Fonte Bitcoin Exchange Traded Fund OEIC (BETF), which will trade on the Astana International Exchange (AIX). This move positions Kazakhstan alongside global leaders like the United States, Canada, and Hong Kong in offering spot Bitcoin ETFs.
The BETF fund secures its bitcoins in cold wallets managed by BitGo Trust, a U.S.-based custodian with $250 million under management, ensuring top-notch security through vault storage. This setup minimizes hacking risks and counterpart issues while maintaining low fees and close price tracking of Bitcoin. Investors can purchase shares via AIX without managing private keys or using crypto exchanges, a convenience supported under the legal framework of the Astana International Financial Centre (AIFC).
This initiative comes as Bitcoin ETFs are experiencing soaring interest worldwide, now reaching a market cap exceeding $160 billion just a year and a half after their introduction. Neighboring countries are also progressing: Uzbekistan, for instance, climbed 54 spots in the Global Crypto Adoption report, while legalizing tax-free crypto mining and trading since 2018. Meanwhile, Kyrgyzstan treats Bitcoin as a regulated commodity, permitting its trade and mining under clear guidelines.
Kazakhstan’s launch of the BETF marks a pivotal step in Central Asia’s crypto adoption, signaling a shift towards mainstream acceptance of Web3 finance in the region. It invites investors both local and international to engage with Bitcoin in a regulated, secure environment, encouraging other nations nearby to follow suit as the digital asset ecosystem continues to expand across Asia.