Singapore Rejects Spot Bitcoin ETFs Despite US Green Light

Singapore has decided not to allow the listing of spot Bitcoin ETFs in its domestic market, despite the recent authorization of such products by the US regulator. The country’s central bank, the MAS, stated that Bitcoin and other cryptocurrencies do not qualify as suitable assets for ETFs.

However, the MAS also said that licensed capital market intermediaries can provide access to overseas spot Bitcoin ETFs, as long as they comply with the relevant rules and disclosures. This means that retail investors in Singapore can still trade these products through local brokers, but they should be aware of the risks involved.

A MAS spokesperson clarified that spot Bitcoin ETFs fall outside the purview of collective investment schemes (CIS), regulated under the Securities and Futures Act. The spokesperson added that local brokers have restrictions on the types of assets they can offer, and Bitcoin and other digital payment tokens are not among them.

The main reason for this exclusion, according to the spokesperson, is the high volatility and speculation of cryptocurrency trading, which makes it unsuitable for retail investors. The spokesperson advised those who still want to trade spot Bitcoin ETFs in foreign markets to exercise extra caution, and to take into account the additional risks of overseas trading.

US Spot Bitcoin ETFs Break Records

The news from Singapore contrasts with the recent approval of several spot Bitcoin ETF by the US SEC, which marked a historic milestone for the crypto industry. These products, which track the price of Bitcoin directly, rather than through futures contracts, have attracted huge demand from investors.

According to data from Bloomberg, the spot Bitcoin ETFs traded over $10 billion in volume in the first three days after their launch. This is more than the combined volume of the 500 ETFs that debuted in 2023, which was only $450 million, as noted by senior ETF analyst Eric Balchunas.

Related Reading | Crypto Industry Advances With Stablecoin & Institutions, Circle CEO Says

Furthermore, the author’s views are for reference only and shall not constitute investment advice. Before purchasing, please ensure you fully understand and assess the products and associated risks.

Comments (No)

Leave a Reply