Kazakhstan has made history by approving and launching Central Asia’s first spot Bitcoin exchange-traded fund (ETF), marking a major step for the region’s crypto adoption.
The Fonte Bitcoin Exchange Traded Fund (BETF), issued by Fonte Capital, began trading today on the Astana International Exchange (AIX). The product allows both retail and institutional investors to gain direct exposure to Bitcoin price movements through a regulated, market-friendly vehicle, a first for the country and the wider region.
BitGo, a U.S.-regulated digital asset custodian known for its strong insurance protections (up to $250 million coverage) and safe offline cold storage vaults, holds real Bitcoin as collateral for the BETF. This is different from synthetic or futures-based products. This method greatly lowers the risks associated with holding digital assets, providing investors who are unfamiliar with crypto’s technical complexities with peace of mind.
As a non-exempt, publicly available financial vehicle, the fund is regulated by the Astana International Financial Centre (AIFC). Professional and amateur investors can now do business in Kazakhstan, Central Asia, and other countries, from Almaty to London and beyond, thanks to this decision. They won’t need secret wallets or complicated custody solutions to do so.
Kazakhstan Begins ETF Journey
Kazakhstan has become a global hub for Bitcoin mining, especially since China shut down the industry in 2021. The country boasts a significant amount of coal-powered energy, effective regulations, and strategic investments, making it one of the world’s top Bitcoin mining destinations, with its hash rate sometimes accounting for up to 15–18% of the global total. This skill in mining built the country’s strong digital asset system.
Kazakhstan is a regional leader and a rising international crypto hub because it is willing to encourage innovation and has a more open regulatory framework than neighbouring countries like Uzbekistan and Kyrgyzstan.
Officials have promoted the launch of the BETF as a means to attract foreign investment and legitimize the sector, thereby replacing illegal operations with legitimate businesses.
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