Bitcoin ETFs Not Approved for Retail Investors in Singapore
The Monetary Authority of Singapore (MAS) has clarified its stance on Bitcoin exchange-traded funds (ETFs), stating that they are considered collective investment schemes (CIS) and are not approved for trade for retail investors in the country.
ETFs Categorized Under CIS
The MAS categorizes ETFs as part of collective investment schemes, which are regulated by the Securities and Futures Act. These schemes are not under the day-to-day control of participants and involve pooled contributions and income. However, the MAS has not recognized Bitcoin or other cryptocurrencies as eligible assets for retail CIS, therefore retail investors in Singapore cannot participate in Bitcoin ETFs.
Bitcoin ETF Approval in the US
The approval of Bitcoin ETFs in the US has been closely watched by the global crypto community. The US Securities and Exchange Commission approved the first set of ETF applications on January 10, allowing institutional and retail investors in the US to gain exposure to Bitcoin without buying the cryptocurrency itself. These US-listed Bitcoin ETFs saw a total trade value of $4.6 billion.
Regulatory Bodies Remain Cautious
The approval of Bitcoin ETFs in the US was seen as a victory but was met with caution from regulatory bodies. SEC chair Gary Gensler still expresses apprehension towards Bitcoin, considering it a “speculative, volatile asset.” The MAS advises investors trading Bitcoin ETFs in overseas markets to be extremely cautious.
Hot Take: Singapore Maintains Strict Stance on Bitcoin ETFs
The Monetary Authority of Singapore remains firm in its position on Bitcoin ETFs. Despite the approval of such investment products in the US, the MAS asserts that Bitcoin ETFs fall under collective investment schemes and are not approved for retail investors in Singapore. While this has limited retail investors in the country from participating in spot Bitcoin ETFs, it shows the MAS’s commitment to maintaining strict regulations in the crypto market. As the discussion around Bitcoin ETFs continues, investors are advised to approach these investment products with caution, acknowledging the speculative and volatile nature of cryptocurrencies.
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