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CoinDesk 2025-08-12 21:00:00

Kazakhstan’s Fonte Capital Introduces Central Asia’s First Spot Bitcoin ETF

Kazakhstan, one of the world’s largest bitcoin mining countries, has become the location of central Asia's first spot bitcoin (BTC) exchange-traded fund (ETF). Astana-based Fonte Capital said the Fonte Bitcoin Exchange Traded Fund OEIC (BETF) will start trading Aug. 13 on the Astana International Exchange (AIX). The ETF will be priced in dollars. Kazakhstan shot up the bitcoin mining rankings after China banned the industry in 2021, pushing operations abroad. Kazakhstan benefited from its abundant coal-powered electricity and favorable regulations. Unlike exchange-traded notes, BETF holds the bitcoin directly, with custody provided by U.S.-regulated custodian BitGo that insures up to $250 million of holdings. BitGo uses offline cold storage and secure vaults — measures designed to reassure both institutional investors and retail buyers wary of hacks and counterparty risks. The fund is regulated by the Astana International Financial Centre (AIFC), a jurisdiction that its backers say can shield assets from freezes linked to international sanctions while avoiding dependence on foreign issuers. The AIFC has sought to build on that position by introducing a legal framework for digital assets, allowing licensed exchanges, custodians and investment products to operate within its jurisdiction. Neighboring countries in Central Asia, such as Uzbekistan and Kyrgyzstan, have taken more cautious approaches, leaving Kazakhstan as the most open market for crypto investment in the region. For a country looking to diversify its financial sector, a regulated crypto product could draw foreign capital and integrate local markets into the broader digital asset economy The ETF’s structure allows for in-kind settlements and aims to keep the total expense ratio low while reducing tracking error against the bitcoin price. BETF’s debut aligns Kazakhstan with a growing global roster of jurisdictions — including the U.S., Canada and Hong Kong — that have approved spot bitcoin ETFs. In practice, it means that an investor in Almaty or London could buy shares in the fund through AIX without needing to manage private keys or navigate crypto exchanges. Fonte Capital, which registered with AIFC in 2022, manages diversified investment funds and said BETF will give investors a straightforward way to add bitcoin to a portfolio while retaining “a high level of control and reliability.”

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