Kazakhstan has marked a significant milestone as it becomes the first country in Central Asia to introduce a Bitcoin Exchange Traded Fund (BETF), joining global counterparts in offering regulated access to the leading cryptocurrency. Fonte Capital, an investment manager based in Astana, Kazakhstan’s capital, has launched the Fonte Bitcoin Exchange Traded Fund OEIC (BETF) on the Astana International Exchange (AIX). The BETF, priced in USD and backed by Bitcoin, provides institutions and investors with secure and regulated exposure to the primary cryptocurrency. BitGo Trust, an American firm overseeing up to $250 million in capital, will serve as the fund’s custodian, storing bitcoins in cold wallets within secure vaults to prevent hacking attempts or risks from counterparties. Investors, both local and international, can acquire shares of the BETF fund through AIX without the need to manage private keys or engage with cryptocurrency exchanges. Operating under the Astana International Financial Centre (AIFC) jurisdiction, the fund adheres to the legal framework for digital assets in the Central Asian region. Kazakhstan’s move places it alongside countries like the United States, Canada, and Hong Kong in approving and operating spot Bitcoin exchange-traded funds (ETFs), establishing its leadership in Web3 finance within the region. This development aligns with the growing interest in Bitcoin ETFs from institutions, governments, and individual investors, with these financial instruments currently holding a market capitalization exceeding $160 billion. While Kazakhstan leads the way in Central Asia, neighboring countries are also exploring cryptocurrency adoption. Uzbekistan, for instance, surged to the 33rd spot in last year’s Global Crypto Adoption report by Chainalysis, legalizing crypto mining and trading tax-free since 2018. Similarly, Kyrgyzstan treats Bitcoin as a commodity, allowing regulated buying, selling, and mining activities. As the region embraces digital assets and innovative financial solutions, Kazakhstan’s inauguration of the BETF signals a pivotal step towards mainstream cryptocurrency adoption in Central Asia.
Kazakhstan Launches Central Asia’s First Bitcoin ETF on Astana International Exchange
