Kazakhstan lists first spot Bitcoin ETF on Astana International Exchange

An exchange based in Kazakhstan, the Central Asian crypto mining hub, has listed the region’s first exchange-traded fund tracking the price of Bitcoin (BTC).

The spot Bitcoin ETF, launched by an Astana-registered company, provides investors with new opportunities in this part of the world, while helping Kazakhstan enter a growing global market.

Spot Bitcoin ETF trade starts in Kazakhstan

The Astana International Exchange (AIX) announced on Wednesday the first public listing of a spot Bitcoin ETF in Central Asia, as quoted by local media. Fonte Capital, the investment management firm behind the Fonte Bitcoin Exchange Traded Fund OEIC Plc, shared the news in a separate press release.

Trading of the fund’s shares commenced with the Ring the Bell ceremony at AIX, under the ticker BETF and with price quotes in U.S. dollars, the company detailed. BETF provides investors with regulated access to Bitcoin, reflecting the price dynamics of the cryptocurrency, without directly owning the digital asset.

The fund is backed by physical Bitcoin stored with a licensed custodian, the Palo Alto, U.S.-headquartered digital asset trust company BitGo, according to crypto media reports.

Birzhan Astayev, managing director of markets and products at AIX, was quoted as stating:

“The debut of Kazakhstan’s first spot Bitcoin ETF opens a new chapter in the development of our capital market, bringing digital assets into the mainstream of the investment industry.”

He added that the BETF launch confirms the exchange’s commitment to “connecting global investors with Central Asian opportunities,” and insisted “this step contributes to Kazakhstan’s advancement as a key regional hub for regulated digital finance.”

Kazakhstan makes another crypto move

The former Soviet republic of Kazakhstan established itself as a major crypto mining hotspot in the wake of China’s decision to enforce a ban on crypto-related activities several years ago, including the minting of digital currencies.

Since then, Kazakh authorities have taken multiple steps to regulate the growing crypto sector, including by adopting tax rules and regulating cryptocurrency trading on domestic platforms.

Initially, only residents of the Astana International Financial Center (AIFC) were authorized to provide such services, but the government plans to license other exchanges as well, as Cryptopolitan reported in May.

Commenting on the latest move towards expanding the country’s crypto market, the CEO of the AIFC-registered Fonte Capital, Yerzhan Musin, pointed out that the company is offering investors a secure way to add Bitcoin to their portfolios, emphasizing:

“We are confident that our fund will become a sought-after tool for those seeking to diversify their portfolios and gain access to a new category of financial instruments.”

Both AIX and Fonte highlighted that the fund is accessible to a broad range of market participants, including retail investors. It’s structured as a public fund under the AIFC jurisdiction.

The AIFC is the financial hub in Kazakhstan’s capital, providing a special legal regime and favorable regulations for firms in the industry, including platforms dealing with cryptocurrencies.

It is part of the financial infrastructure of Beijing’s Belt and Road Initiative and was created to boost financial connectivity among Central Asian nations, China, Russia, and the Arab countries.

The Astana International Exchange was established in 2017 in an effort to create the AIFC, which was officially launched in the summer of 2018.

The AIFC, the Shanghai Stock Exchange, the Silk Road Fund, and NASDAQ are the main shareholders in AIX, which aims to develop capital markets in Kazakhstan and the region.

“The listing of the [Bitcoin] fund is in line with the AIFC’s strategic goal of strengthening Kazakhstan’s position as a hub for digital finance and investment in the region,” AIX underscored in the BETF announcement.

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