By Shelly Melancon (Switzerland)
Fintonia Group, a Singapore-based asset management company approved by the financial regulatory body in Singapore, has launched a “Physical” Bitcoin fund and yield fund. News media in Singapore reported the information. The initiative by Fintonia is directed towards big investors that want unfiltered access to the Bitcoin market. It also allows investors to get lines of credit on their Bitcoin holdings.
What The Funds Offer
Adrian Chng, founder and chairman of the asset management firm disclosed that the fund would buy Bitcoin itself for the investors and not financial assets that change with the interest rates on Bitcoin. The firm intends to give investors an easy and secure on-ramp and off-ramp to access the Bitcoin market directly. The firm revealed that a government-approved custodian would hold the Bitcoin.
The firm disclosed that as a licensed asset manager, they have connections with cryptocurrency exchanges and big market players. These connections, they claim, will enable them to get the best deals and liquidity to fill their orders. Adrian stated that the funds make easy transactions possible, reducing the need to transfer huge sums of cash.
On the other hand, the Bitcoin Secured Yield Fund will allow users to get loans. They will be able to get fiat currency while still keeping their Bitcoin investment. The founder believes that Bitcoin will serve as good collateral due to how easy it is to trade compared to other assets usually used as collateral to take loans. This follows the trend of increased preference of Bitcoin to gold by asset managers.
Also read:Bitcoin A Better Store Of Value Than Gold?
Asset managers are beginning to see Bitcoin as a better store of value than gold. They believe it provides them better protection from inflation. Some asset managers believe that in the long run, Bitcoin will be a better asset than Gold.
CEO at Galaxy Digital Holdings Mike Novogratz, during their third-quarter earnings report, said that Gold is a great asset, but at the moment, Bitcoin is just doing way better. Novogratz added that Bitcoin is an upgrade. Its fast adoption has created a large market around it that continues to expand.
Founder of Skybridge Capital, Anthony Scaramuccci, also believes that Bitcoin will do better than Gold. He says that Bitcoin will eventually grow to overshadow gold. He thinks Bitcoin is still in its early days. He predicts the price will easily get to $500,000 in the future.
Scaramuccci encourages investors to get Bitcoin. Scaramuccci said that the market cap of Bitcoin will only continue to grow. He expects the tokens market cap to rise exponentially and that of gold to rise but slower.
Another well-known asset manager Paul Tudor Jones has also expressed his preference of the digital asset to gold. He started in October that he believed Bitcoin provided better protection against inflation to Gold. He sees it as a new asset class and believes it is winning against gold for the time being.
Bitcoin funds provide an efficient Bitcoin investment process for investors. The firms allow investors to access the Bitcoin market indirectly by purchasing shares of the Bitcoin Funds Company. However, it is only through direct investment like what Fintonia plans to offer that investors can enjoy the full benefits provided by blockchain technology.
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