Monetary Authority of Singapore: Spot Bitcoin ETF cannot be listed in Singapore

Source: Lianhe Zaobao

Spot Bitcoin exchange-traded funds (ETFs) have been officially listed in the United States recently, attracting great attention from the market. The Monetary Authority of Singapore does not allow such financial products to be listed and targeted in Singapore. Retail investors, because cryptocurrencies such as Bitcoin are not listed as eligible assets for ETFs.

Nonetheless, capital market intermediaries licensed by the HKMA to provide overseas market-related investments must ensure adequate risk disclosure and appropriate client suitability assessments. This means that retail investors can still trade spot Bitcoin ETFs listed overseas through local brokers.

In response to inquiries from Lianhe Zaobao, a spokesman for the Monetary Authority said that collective investment schemes (CIS) that retail investors in Singapore can participate in are regulated by the Securities and Futures Act and cover ETFs. They are limited in the types of assets they can invest in. Currently, Bitcoin and other digital payment tokens (DPT) are not eligible assets for retail CIS. Digital payment tokens are also known as cryptocurrencies in Singapore.

The spokesperson reiterated: “Cryptocurrency trading is highly volatile and speculative in nature and is not suitable for retail investors. Those who still choose to trade Bitcoin ETFs in overseas markets must exercise extreme caution. In addition, they must The additional risks associated with trading in overseas markets should be carefully considered."

Retail investors, also known as retail customers, refer to investors other than accredited investors or institutional investors. According to the Securities and Futures Act, a qualified investor refers to one whose financial assets exceed NT$1 million; whose income in the previous 12 months is not less than NT$300,000; or whose personal net worth exceeds NT$2 million, of which the value of the individual’s principal residence (deducting Any guaranteed loan) can only be made by those who contribute up to $1 million.

In order to enhance investor protection and discourage speculative retail trading of cryptocurrencies, the Hong Kong Monetary Authority recently launched a consultation with the public on the regulatory measures for crypto industry players. It released the results of the consultation and new measures in two phases in July and November last year.

The U.S. Securities and Exchange Commission (SEC) approved the listing of 11 spot Bitcoin ETFs for the first time last Wednesday (January 10) and began trading the next day. Issuers include BlackRock, Fidelity, Invesco, and Ark Invest, an asset management company owned by American “stock goddess” Cathie Wood, teamed up with Swiss Crypto 21Shares for investment companies.

According to data compiled by Bloomberg, Grayscale Investments converted from a Bitcoin trust product to an exchange-traded fund - Grayscale Bitcoin Trust is the ETF with the highest first-day trading volume in history. has a trading volume of approximately US$2.3 billion; another iShares Bitcoin Trust issued by BlackRock has a trading volume of more than US$1 billion.