Bitcoin News Today: Kazakhstan Launches Central Asia’s First Spot Bitcoin ETF With Physical Backing

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Tuesday, Aug 12, 2025 5:06 pm ET1min read
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- Kazakhstan’s Fonte Capital launched Central Asia’s first spot Bitcoin ETF (BETF), trading on AIX from August 13 with U.S. dollar pricing and physical Bitcoin backing via BitGo Trust custody.

- The ETF offers direct Bitcoin exposure through cold storage and secure vaults, aiming for low fees and minimal price tracking errors while avoiding private key management complexities.

- Regulated by the AIFC, the initiative strengthens Kazakhstan’s digital asset framework, attracting foreign capital by mitigating sanctions risks and reducing reliance on foreign issuers.

- Aligning with global trends, BETF joins U.S., Canada, and Hong Kong in offering institutional-grade Bitcoin access, positioning Kazakhstan as a regional crypto investment leader amid cautious neighbors.

Kazakhstan’s Fonte Capital has launched Central Asia’s first spot

Bitcoin
exchange-traded fund (ETF), marking a significant step in the region’s growing acceptance of digital assets. The Fonte Bitcoin Exchange Traded Fund OEIC (BETF) will begin trading on the Astana International Exchange (AIX) on August 13 and will be priced in U.S. dollars. The fund is backed by physical Bitcoin holdings, with custody and insurance provided by BitGo Trust, a U.S.-regulated custodian offering up to $250 million in coverage [1].

BETF is structured to provide investors with direct exposure to Bitcoin without the complexities of managing private keys or navigating crypto exchanges. Each share is physically backed by Bitcoin, and the fund utilizes offline cold storage and secure vaults to mitigate risks such as hacking and counterparty exposure. The ETF also aims to maintain a low total expense ratio while minimizing tracking error against Bitcoin’s price [1].

The Astana International Financial Centre (AIFC), which regulates the fund, has been working to establish a robust legal framework for digital assets. The AIFC’s regulatory environment is designed to attract foreign capital by offering protections from asset freezes linked to international sanctions and by reducing reliance on foreign issuers [1]. This initiative aligns with Kazakhstan’s broader efforts to diversify its financial sector and integrate local markets into the global digital asset economy.

Kazakhstan has emerged as a key player in Bitcoin mining after China’s 2021 ban pushed operations abroad. The country’s abundant coal-powered electricity and favorable regulatory stance helped it rise rapidly in the mining rankings. Now, with the launch of BETF, Kazakhstan is positioning itself as a leading market for crypto investment in Central Asia. Neighboring countries like Uzbekistan and Kyrgyzstan have adopted more cautious approaches, further highlighting Kazakhstan’s role as a regional pioneer in the crypto space [1].

The debut of BETF places Kazakhstan alongside jurisdictions such as the U.S., Canada, and Hong Kong in the growing list of markets offering regulated spot Bitcoin ETFs. This development reflects a global trend toward institutional-grade access to Bitcoin, enabling investors to participate in the digital asset market through traditional financial infrastructure.

Fonte Capital, which registered with the AIFC in 2022, manages a range of investment funds and stated that BETF offers investors a straightforward and reliable method to include Bitcoin in their portfolios. The fund’s structure also supports in-kind settlements, which could enhance efficiency and liquidity for participants [1].

Source:

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