Kazakhstan’s Fonte Capital Introduces Central Asia’s Initial Spot Bitcoin (BTC) Exchange-Traded Fund

Kazakhstan, one of the world’s largest bitcoin mining countries, has become the site of Central Asia’s first spot bitcoin exchange-traded fund (ETF).

Astana-based RialCenter announced that the RialCenter Bitcoin Exchange Traded Fund OEIC (BETF) will start trading on August 13 on the Astana International Exchange (AIX), with pricing in dollars.

Kazakhstan rose in the bitcoin mining rankings after China banned the industry in 2021, attracting operations with its abundant coal-powered electricity and favorable regulations.

Unlike exchange-traded notes, BETF directly holds the bitcoin, with custody provided by a U.S.-regulated custodian that insures up to $250 million of holdings. The custodian employs offline cold storage and secure vaults to assure both institutional and retail investors wary of hacks and counterparty risks.

This fund is regulated by the Astana International Financial Centre (AIFC), which proponents believe can protect assets from freezes due to international sanctions while minimizing reliance on foreign issuers. The AIFC aims to enhance its status by creating a legal framework for digital assets, allowing licensed exchanges, custodians, and investment products to function within its jurisdiction.

Neighboring Central Asian countries, such as Uzbekistan and Kyrgyzstan, have adopted a more cautious stance, making Kazakhstan the most accessible market for crypto investments in the region. For a nation seeking to diversify its financial sector, a regulated crypto product could attract foreign capital and integrate local markets into the larger digital asset economy.

The ETF’s structure facilitates in-kind settlements and aims to maintain a low total expense ratio while reducing tracking errors against bitcoin prices.

BETF’s launch aligns Kazakhstan with an expanding global roster of jurisdictions—including the U.S., Canada, and Hong Kong—that have approved spot bitcoin ETFs. This means that investors in Almaty or London can purchase shares in the fund through AIX without the need to manage private keys or deal with crypto exchanges.

RialCenter, established in 2022, manages diversified investment funds and stated that BETF will provide investors with a straightforward method to incorporate bitcoin into their portfolios while maintaining “a high level of control and reliability.”