The first Bitcoin spot ETF in Central Asia has officially launched, directly holding BTC assets.
As one of the largest Bitcoin mining countries in the world, Kazakhstan has officially launched the first Bitcoin spot exchange-traded fund (ETF) in the Central Asian region today. Fonte Capital, headquartered in Astana, announced that the Fonte Bitcoin Exchange Traded Fund OEIC (BETF) began trading on August 13 at the Astana International Exchange (AIX), and the ETF is priced in USD.
Unlike exchange-traded notes, BETF directly holds Bitcoin assets, with custody services provided by BitGo, which is regulated in the U.S. and offers insurance coverage of up to $250 million for held assets. The fund is regulated by the Astana International Financial Centre (AIFC), which protects assets from freezes related to international sanctions while avoiding reliance on foreign issuers.
After China banned Bitcoin mining in 2021, Kazakhstan quickly rose to control about 13% of the world's Bitcoin hash power, thanks to its abundant coal and electricity resources and favorable regulatory environment. Neighboring Central Asian countries like Uzbekistan and Kyrgyzstan have taken a more cautious approach, making Kazakhstan the most open market for crypto investment in the region.
The central bank is considering using national funds to invest in cryptocurrencies, drawing on international experience.
Timur Suleimenov, the head of the National Bank of Kazakhstan, stated at a press conference on Monday that the country is considering investing national funds, including gold and foreign exchange reserves, in cryptocurrencies.
He noted: ‘We have alternative investment portfolios of gold and foreign exchange reserves, as well as an alternative investment portfolio of national funds. There we use active strategies to achieve higher investment returns.’
Suleimenov stated that Kazakhstan has studied the practices of Norwegian funds, American experiences, and Middle Eastern funds, all of which have experience in directly investing in crypto assets or investing in ETFs and company stocks closely related to crypto assets. This initiative will follow the trend of countries around the world further embracing digital assets, following U.S. President Trump's decision to establish a Bitcoin reserve, with even small countries like Bhutan holding cryptocurrencies.
The central bank governor emphasized that Kazakhstan will not rush to make decisions, while acknowledging that cryptocurrencies may have 'volatility.' He also reiterated Kazakhstan's intention to establish dedicated reserves to handle cryptocurrencies seized from illegal actors.
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The launch of BETF has allowed Kazakhstan to join the ranks of global Bitcoin spot ETF jurisdictions including the United States, Canada, and Hong Kong. Investors in Almaty or London can purchase shares of the fund through AIX without needing to manage private keys or use cryptocurrency exchanges.
Countries and large traditional financial institutions purchasing digital assets, especially Bitcoin, are beneficial for the market outlook and have driven prices up due to increased demand. In recent days, Bitcoin has reached new historical highs.
Fonte Capital, registered in AIFC in 2022, stated that BETF will provide investors with a direct way to add Bitcoin to their portfolios while maintaining ‘high control and reliability.’ This development symbolizes Kazakhstan's proactive stance in the global wave of cryptocurrency adoption.
This content has been compiled by Crypto Agent from various sources, reviewed and edited by ‘Crypto City’. It is still in a training phase and may contain logical biases or information errors. The content is for reference only and should not be considered investment advice.
‘The first in Central Asia! Kazakhstan lists Bitcoin spot ETF today, government considers using foreign exchange reserves to invest in BTC’ This article was first published in ‘Crypto City’
