Kazakhstan is launching the first spot Bitcoin (BTC) ETF in Central Asia, providing regulated and physically backed new investment opportunities for crypto investors in the region.
Kazakhstan has officially become the first country in Central Asia to launch a spot Bitcoin ETF. Fonte Capital, based in Astana, is opening the “Fonte Bitcoin Exchange Traded Fund OEIC” (BETF) for trading on the Astana International Exchange (AIX) starting August 13. The ETF, which will be custodied by BitGo Trust in the US, is designed to be physically backed by Bitcoin for each share.
Kazakhstan, one of the largest Bitcoin mining centers in the world, rapidly increased its share in this field following China's mining ban in 2021. BETF allows investors to access Bitcoin without dealing with private key management or cryptocurrency exchange transactions by offering a structure that directly holds Bitcoin. BitGo stores the fund's assets in offline cold storage and provides insurance coverage of up to 250 million dollars.
The fund is regulated by the Astana International Financial Centre (AIFC), providing asset protection against international sanctions and reducing dependency on foreign issuers. While neighboring countries like Uzbekistan and Kyrgyzstan take a more cautious approach, Kazakhstan solidifies its position as the most open crypto market in the region with this move.
BETF aims to attract both local and international investors with a low expense ratio and a performance target closely aligned with the price of Bitcoin. This step elevates Kazakhstan to the league of countries that have approved spot Bitcoin ETFs, such as the US, Canada, and Hong Kong.