- The Astana International Exchange (AIX) in Kazakhstan has listed the region’s first spot Bitcoin ETF, managed by Fonte Capital and trading under the ticker BETF.
- The ETF’s physical Bitcoin is held by BitGo Trust, a regulated US subsidiary, which provides institutional custody and secures the assets in offline cold storage.
- This product allows both institutional and retail investors to gain regulated exposure to BTC, with its structure offering features like in-kind settlements and a low expense ratio to minimise tracking error.
Kazakhstan’s Astana International Exchange (AIX) has listed the region’s first spot Bitcoin ETF, with US-regulated custodian BitGo appointed to secure the fund’s assets.
The product, the Fonte Bitcoin Exchange Traded Fund (BETF), is managed by Fonte Capital and gives both institutional and retail investors indirect exposure to BTC.
According to the announcement, the ETF is fully backed by Bitcoin stored in BitGo Trust’s cold storage. BitGo Trust, the firm’s regulated US subsidiary, already safeguards holdings for major issuers such as ARK Invest and 21Shares, but this marks its first institutional custody deal for a Bitcoin ETF in Central Asia.
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A New Era
BitGo described Kazakhstan as “entering a new era for digital assets” and stressed that BETF’s holdings will be maintained in secure, US-regulated cold storage. While the company disclosed its involvement, neither Fonte Capital nor AIX referenced the custodian in their own announcements.
Unlike exchange-traded notes, BETF holds Bitcoin directly, and BitGo Trust provides insurance up to US$250M (AU$381M) in assets and stores holdings in offline cold wallets within secure vaults, safeguards aimed at addressing concerns over hacks and counterparty risk.
The ETF is regulated under the Astana International Financial Centre (AIFC), whose legal framework for digital assets allows licensed exchanges, custodians, and investment products to operate locally while insulating assets from certain international sanction risks.
BETF’s structure allows in-kind settlements, targets a low total expense ratio, and aims to minimise tracking error against the spot price of Bitcoin. It joins a growing list of spot Bitcoin ETFs approved in jurisdictions like the US, Canada, and Hong Kong.
Fonte Capital, registered with the AIFC in 2022, said the ETF gives portfolio managers and retail investors “a high level of control and reliability” when adding Bitcoin to their allocations.
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