Key Highlights: Fonte Capital’s BETF physically backs Bitcoin with custody by BitGo Trust. Fund regulated by AIFC, offering protections against sanctions and risks. Kazakhstan’s cheap energy and regulation aid rise as global Bitcoin mining hub. Kazakh investment company Fonte Capital has introduced the first Bitcoin spot exchange-traded fund in Central Asia — the Fonte Bitcoin Exchange Traded Fund OEIC (BETF). Trading in the fund began on August 13 on the Astana International Exchange (AIX) under the ticker BETF. Each BETF share is physically backed by Bitcoin, securely stored by the US-based custodian BitGo Trust. The fund’s assets are insured up to $250 million, employing cold offline storage and secure vaults to mitigate hacking or loss risks. Regulated by the Astana International Financial Centre (AIFC), BETF benefits from protections that reduce the risk of asset freezing due to international sanctions and minimize dependence on foreign issuers. The AIFC has established a robust legal framework for digital assets, permitting licensed exchanges, custodians, and investment products within its jurisdiction. The launch of BETF coincides with Kazakhstan’s rise as a global leader in Bitcoin mining following China’s 2021 mining ban. By 2022, Kazakhstan ranked among the top three Bitcoin mining countries, attracting miners with inexpensive coal-generated electricity and favorable regulatory conditions. Unlike exchange-traded notes, BETF directly owns Bitcoin, reducing counterparty risk and closely tracking the market price with less uncertainty. The fund’s structure allows for in-kind settlements and maintains a low expense ratio. Fonte Capital states that BETF offers investors “an easy way to add Bitcoin to a portfolio while maintaining a high level of control and security.” Investors domestically and internationally can buy shares on AIX without handling keys or interacting directly with crypto exchanges. Kazakhstan continues integrating crypto assets within its economy by legalizing crypto exchangers, creating an experimental zone called CryptoCity for digital asset settlements, developing a strategic crypto reserve concept, and considering part of its gold and foreign exchange reserves for investment in the crypto market.
