Kazakhstan, one of the world’s largest Bitcoin mining countries, has become the first spot for Bitcoin in Central Asia
Astana-based Fonte Capital said on August 13 that Fonte Bitcoin Exchange Traded Fund OEIC (BETF) will begin trading at Astana International Exchange (AIX). ETF prices are sold in dollars.
Kazakhstan fired up Bitcoin mining rankings and pushed its business overseas after China banned the industry in 2021. Kazakhstan benefited from abundant coal-powered electricity and favorable regulations.
Unlike the memos traded on Exchange, BETF holds Bitcoin directly, provided by US-regulated Custodian Bitgo, and guarantees holdings of up to $250 million. BITGO uses offline cold storage and a secure safe. It is designed to reassure both institutional investors and retail buyers, and you will notice the risks of hacking and counterparty.
The fund is regulated by the Astana International Financial Centre (AIFC). This is the jurisdiction that its supporters can protect their assets from freezing related to international sanctions, while avoiding reliance on foreign issuers. AIFC sought to build on its position by introducing a legal framework for digital assets and allowing licensed exchanges, custodians and investment products to operate within their jurisdiction.
Central Asian neighbours such as Uzbekistan and Kyrgyzstan have adopted a more cautious approach, making Kazakhstan the most open market for crypto investments in the region. For countries looking to diversify the financial sector, regulated crypto products can pull out foreign capital and integrate local markets into a broader digital asset economy
The ETF structure aims to keep the total cost ratio low while allowing for physical settlements and reducing tracking errors to Bitcoin price.
BETF’s debut has increased Kazakhstan’s global roster of jurisdictions, including the US, Canada and Hong Kong, which approved the Spot Bitcoin ETF. In reality, it means that Almaty or London investors can purchase shares in the fund through AIX without having to manage their private keys or navigate crypto exchanges.
Registered with AIFC in 2022, Fonte Capital manages diversified investment funds and said BETF offers an easy way for investors to add Bitcoin to their portfolios, while retaining “high levels of control and reliability.”
