Kazakhstan Launches Central Asia’s First Spot Bitcoin ETF on August 13
Kazakhstan has launched Central Asia's first spot bitcoin ETF, the Fonte Bitcoin Exchange Traded Fund (BETF), which will start trading on August 13 on the Astana International Exchange (AIX) and is priced in dollars.
Key points include:
- Kazakhstan's rise as a major bitcoin mining hub following China's 2021 ban on the industry.
- BETF directly holds bitcoin, with custody by U.S.-regulated BitGo, which insures up to $250 million in holdings.
- The fund is regulated by the Astana International Financial Centre (AIFC), which offers legal protection for assets against international sanctions.
- Kazakhstan is currently the most open crypto investment market in Central Asia, attracting potential foreign capital.
- BETF enables in-kind settlements and aims to maintain a low expense ratio while minimizing tracking errors against bitcoin prices.
- Investors can buy shares through AIX without needing to manage private keys or use crypto exchanges.
This development positions Kazakhstan alongside jurisdictions like the U.S., Canada, and Hong Kong that have approved similar bitcoin ETFs.