Why Singapore Opposes Bitcoin ETFs
The Monetary Authority of Singapore (MAS) has decided not to allow the listing of Spot Bitcoin Exchange-traded Funds (ETFs) for retail investors. According to MAS, cryptocurrencies like Bitcoin are not considered eligible assets for ETFs. The MAS spokesperson stated that cryptocurrency trading is highly volatile and speculative, making it unsuitable for retail investors. However, despite the ban, Singaporean retail investors can still engage in Spot Bitcoin ETFs listed abroad through licensed intermediaries authorized by the Hong Kong Monetary Authority (HKMA).
The Securities and Futures Act regulates Collective Investment Schemes (CIS) available to Singaporean retail investors, including ETFs. However, there are limitations on the types of assets that can be invested in, and currently Bitcoin and other digital payment tokens are excluded.
Hong Kong is considering adopting a similar approach to Singapore in order to enhance investor protection and discourage speculative retail trading of cryptocurrencies. The Hong Kong Monetary Authority has initiated a public consultation on regulatory measures for the crypto industry.
Spot Bitcoin ETFs Debut in the US
Last week, the US Securities and Exchange Commission (SEC) approved 11 Spot Bitcoin ETFs. These include popular options like Grayscale’s GBTC, BlackRock’s IBIT, and ARK 21Shares ARKB. Other major players such as VanEck, Valkyrie, Fidelity, WisdomTree, Franklin Templeton, Hashdex, and Invesco Galaxy also joined the race.
These approved ETFs went live on January 11 and initially recorded a trading volume of over $4.6 billion. However, they experienced a pullback on the second day and have since been registering continuous declines.
Hot Take: Singapore’s Stance on Bitcoin ETFs
The Monetary Authority of Singapore’s decision to prohibit the listing of Spot Bitcoin ETFs for retail investors showcases its cautious approach towards cryptocurrency trading. While the MAS believes that such investments are highly volatile and speculative, it allows Singaporean retail investors to engage in these ETFs through licensed intermediaries operating in overseas markets. This highlights the importance of investor protection and regulatory measures in the crypto industry.
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