Singapore’s regulator refuses to allow spot BTC ETFs into the local market

At the same time, retail investors can trade shares of foreign funds through licensed brokers

18.01.2024 - 09:35

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3 min

What’s new? The Monetary Authority of Singapore (MAS) has refused to allow spot bitcoin exchange-traded funds (ETFs) into the local market, following the US because trading the asset through ETFs is not allowed by law. However, retail investors are allowed to trade bitcoin ETF shares listed on foreign exchanges through local brokers licensed by the central bank.

Material by Lianhe Zaobao

What else is known? A MAS spokesperson explained that collective investment schemes (CIS) in which retail investors can participate are governed by the Securities and Futures Act. It also spells out the types of assets available for investment under CIS, and bitcoin, as well as other cryptocurrencies or digital payment tokens (DPTs), is not currently included in this list.

The MAS also reminded that cryptocurrency trading is highly volatile and speculative in nature, and retail investors should exercise caution when dealing with bitcoin ETFs in overseas markets.

Регулятор Сингапура ужесточит доступ розничных инвесторов к криптовалютам

Чиновники также напомнили, что цифровые активы несут повышенные риски отмывания денег

In November last year, MAS chief Ravi Menon said that private cryptocurrencies do not meet the necessary criteria for digital money and are poorly established as a medium of exchange or store of value.

In turn, the Hong Kong regulator began accepting applications for spot crypto ETFs back in December. According to industry representatives, the launch of such products may take place as early as the first quarter of this year.

In the United States, 11 spot BTC ETFs were admitted to the market on January 11. Already on January 16, their total daily trading volume surpassed the figure of five hundred exchange-traded funds launched last year.

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