Singapore’s Role in Bitcoins

Reading a recent Ars article highlighted to me how close Bitcoins are in Singapore’

“Taming the bubble”: investors bet on Bitcoin via derivatives markets
by Cyrus Farivar – Apr 12 2013, 8:50am SGT

“Similar to Exchange Traded Funds, the Bitcoin Fund objective is to purchase and store BTC; 1 Bitcoin Fund Unit = 1 BTC,” the site states. “The investment objective of the Fund is to achieve capital gains in the Net Asset Value of the Fund Shares. The fund currently manages a portfolio of 81,000 BTC and has achieved a phenomenal +1000% return in its short 3-month history.”

Reached by phone in Singapore, Anatoliy Knyazev told Ars that the “Bitcoin Fund” was a “nice addition” to the mix of existing funds and other financial transactions that the company offers. Americans, due to existing regulations, can’t invest in the Bitcoin Fund just yet, but a “feeder fund” is set to be ready in a few months.

“We have alternative funds that invest in wine, real estate,” he said. “Bitcoin as a share of our business is growing but it’s [still small.] We have 82,000 BTC in the fund—today that’s almost $20 million. To compare it with the rest of our business it might be trickier. Our hedge fund market is about $2 billion. What’s important is the amount of return that we get from Bitcoin. In January we had subscriptions, we tried pitching Bitcoin last summer and autumn with mixed results. After the price appreciation in January from 10 to 20 [dollars per bitcoin] we were overwhelmed with people wanting to get in.”

Knyazev added that his investors were other hedge funds and “high net-worth individuals.”

“Let’s say you invest $1 million, and from that we purchase bitcoins. You’re issued the fund shares, so you get 100 shares. After that we take custody of them, geographically distributed, cryptographically secured. The encrypted flash drive copies [of the Bitcoin wallet itself] are kept in bank safes [in Moscow, Singapore and Switzerland.]”

I’m still not clear on the full history of Bitcoins but found a few established web presence online.

Official BitCoin Website

F Y B – S G Singapore’s first Bitcoin Exchange


Anyone care to share more from the inner track?


One response to “Singapore’s Role in Bitcoins

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s