- Singapore’s MAS bans spot Bitcoin ETF listings.
- U.S. SEC approves multiple spot Bitcoin ETFs.
- Singapore allows trading foreign-listed Bitcoin ETFs with risk disclosure.
According to local reports, the Monetary Authority of Singapore (MAS) has declared that it will not permit a spot Bitcoin exchange-traded fund (ETF) within the nation.
This action opposes the U.S. Securities and Exchange Commission’s (SEC) recent sanctioning of multiple spot Bitcoin ETFs in the United States. Singapore maintains that cryptocurrencies, such as Bitcoin, fail to satisfy the requirements for eligible assets in relation to ETFs.
Nevertheless, indications are that intermediaries in the capital market who have obtained licenses from the MAS are permitted to provide investments related to foreign markets, provided that they ensure sufficient disclosure of risks and conduct proper assessments of customer suitability.
“Local brokerages still offer retail investors the opportunity to trade Bitcoin ETFs that are listed in foreign markets,” according to what was reported by the local news. A representative from the regulatory body explained that the Securities and Futures Act covers collective investment schemes (CIS), which encompass ETFs but do not cover Bitcoin or any other cryptocurrencies.
The spokesperson stated that the local brokerages are restricted in the kinds of assets they can offer, and as a result, Bitcoin, along with other cryptocurrencies, is not considered suitable for retail investors. The spokesperson cited the high volatility of cryptocurrencies as the cause for their exclusion.
Cryptocurrency trading is fundamentally unstable and risky, making it inappropriate for casual investors. The spokesperson further emphasized that individuals opting to engage in Bitcoin ETFs on foreign exchanges must be particularly vigilant. Furthermore, investors need to be aware of the increased dangers that come with participating in markets abroad.
Recently reported, the exchange-traded funds (ETFs) for Bitcoin on the spot market reached a trading volume of $10 billion within three days following their authorization. Eric Balchunas, who is an experienced analyst of ETFs, stated that the cumulative trading volume for all 500 ETFs launched in 2023 was merely $450 million.
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