Fonte Capital has debuted the first spot Bitcoin exchange-traded fund in Central Asia after securing approval from the Astana International Financial Centre. The ETF, trading under the ticker BETF on the Astana International Exchange, is physically backed by bitcoin and will commence trading on August 13.
Custody services for the ETF’s underlying digital assets are provided by BitGo Trust, a U.S.-regulated custodian offering insurance coverage up to $250 million. The fund’s design emphasizes direct ownership of bitcoin rather than synthetic or note-based structures, reducing counterparty risk and aligning investor exposures with on-chain holdings.
AIFC regulation mandates robust legal frameworks for digital asset products, requiring licensed exchanges and custodians to adhere to compliance and reporting standards. This environment aims to shield assets from potential sanctions and foster foreign capital inflows into Kazakhstan’s rapidly diversifying financial sector.
Market participants in Almaty, London or other jurisdictions can access the fund without managing private keys or navigating crypto exchanges, simplifying portfolio allocations to bitcoin. The in-kind settlement mechanism and streamlined expense ratio target minimal tracking error versus spot bitcoin price movements.
Kazakhstan has emerged as a leading bitcoin mining jurisdiction since China’s 2021 ban, leveraging abundant energy resources and favorable regulatory policies. With the launch of BETF, the country aligns with a global cohort of jurisdictions including the U.S., Canada and Hong Kong that have approved spot bitcoin ETFs.
Regional neighbors such as Uzbekistan and Kyrgyzstan have adopted more conservative stances on digital assets, positioning Kazakhstan as a potential hub for regulated crypto investment in Central Asia. Fonte Capital, registered with AIFC in 2022, manages diversified funds and expects BETF to meet growing demand for institutional-grade bitcoin exposure in the region.
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