Bitcoin News Today: Kazakhstan Launches Central Asia's First Physically Backed Bitcoin ETF With BitGo Custody

Generated by AI AgentCoin World
Wednesday, Aug 13, 2025 7:42 am ET2min read
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Aime RobotAime Summary

- BitGo provides custody for Kazakhstan's first physically backed Bitcoin ETF (BETF), launched on AIX on August 13, 2025.

- The Fonte Capital-managed ETF offers regulated Bitcoin exposure with $250M insurance, aiming to attract global capital to Central Asia.

- Experts highlight BitGo's institutional credibility but question reliance on foreign custodians over local infrastructure development.

- The AIX-listed ETF marks Kazakhstan's strategic push to expand its crypto ecosystem through regulated digital asset frameworks.

BitGo, a U.S.-regulated cryptocurrency custodian, has provided institutional-grade custody services for Central Asia’s first spot

Bitcoin
ETF, the Fonte Bitcoin Exchange Traded Fund (BETF), which launched on August 13, 2025, on the Astana International Exchange (AIX) in Kazakhstan. The fund, managed by Fonte Capital, a company registered within the Astana International Financial Centre (AIFC), offers indirect exposure to Bitcoin through a regulated and transparent framework, marking a milestone for regional investors [1]. The physically backed ETF holds Bitcoin in custody through BitGo Trust, a U.S.-based subsidiary of BitGo, which has also supported major Bitcoin ETFs in the U.S., such as those from ARK Invest and 21Shares [2].

The launch of the BETF is seen as a strategic move by Kazakhstan to solidify its role in the global crypto ecosystem. The country has previously explored digital assets as part of its national strategy, including plans to create a crypto reserve from seized assets [3]. By introducing a regulated Bitcoin investment vehicle, the government aims to attract both domestic and international capital while promoting a structured environment for digital assets [4]. The ETF is priced in U.S. dollars and is backed by physical Bitcoin, with each share covered by up to $250 million in insurance, addressing investor concerns over security and volatility [5].

Experts have noted that BitGo’s involvement brings both benefits and challenges to the market. While the custodian’s institutional-grade services enhance credibility and investor confidence, it also raises questions about the concentration of infrastructure in global players rather than local solutions [6]. Shady El Damaty, digital identity innovator and co-founder of human.tech, emphasized that while relying on international custodians like BitGo is a fast route to market entry, developing local infrastructure is essential for long-term resilience and financial sovereignty [7]. Bakhrom Saydulloev, a local crypto expert, agreed, noting that using a globally trusted custodian helps build trust and attract foreign capital in the early stages [8].

The Astana International Exchange, which operates under the AIFC and is supported by institutions including the Shanghai stock exchange and Nasdaq, has historically handled modest volumes compared to global counterparts. However, the launch of the ETF is a significant step in expanding its offerings and attracting a broader range of investors [9]. Fonte Capital has positioned the BETF as a transparent and secure option for investors in Central Asia, a region that has seen growing interest in digital assets but has lacked regulated investment vehicles until now [10].

As the first physically backed Bitcoin ETF in Central Asia, the BETF could serve as a model for future products and regulatory developments in the region. Its performance will be closely monitored as an indicator of investor demand and regulatory progress. The initiative also highlights the expanding role of international custodians in supporting digital asset markets in emerging economies, a trend that may influence future market structures and investor access [11].

Source:

[1] Cointelegraph - [https://cointelegraph.com/news/bitgo-spot-bitcoin-etf-kazakhstan-launch](https://cointelegraph.com/news/bitgo-spot-bitcoin-etf-kazakhstan-launch)

[2] CoinDesk - [https://www.coindesk.com/markets/2025/08/12/kazakhstan-s-fonte-capital-introduces-central-asia-s-first-spot-bitcoin-etf](https://www.coindesk.com/markets/2025/08/12/kazakhstan-s-fonte-capital-introduces-central-asia-s-first-spot-bitcoin-etf)

[3] MEXC - [https://www.mexc.com/news/kazakhstan-based-fonte-capital-launches-central-asias-first-spot-bitcoin-etf-trading-begins-on-aug-13/65027](https://www.mexc.com/news/kazakhstan-based-fonte-capital-launches-central-asias-first-spot-bitcoin-etf-trading-begins-on-aug-13/65027)

[4] AInvest - [https://www.ainvest.com/news/kazakhstan-launches-central-asia-bitcoin-etf-physical-holdings-2508/](https://www.ainvest.com/news/kazakhstan-launches-central-asia-bitcoin-etf-physical-holdings-2508/)

[5] AInvest - [https://www.ainvest.com/news/bitcoin-news-today-kazakhstan-launches-central-asia-spot-bitcoin-etf-physical-backing-2508/](https://www.ainvest.com/news/bitcoin-news-today-kazakhstan-launches-central-asia-spot-bitcoin-etf-physical-backing-2508/)

[11] Cryptonews - [https://cryptonews.com/news/fonte-capital-launches-central-asias-first-spot-bitcoin-etf/](https://cryptonews.com/news/fonte-capital-launches-central-asias-first-spot-bitcoin-etf/)