Singapore MAS Strongly Opposes Spot Bitcoin ETF Listing

Spot Bitcoin Exchange-traded Funds (ETFs) recently received the SEC’s approval in the U.S., garnering enormous market attention. In contrast, the Monetary Authority of Singapore (MAS) has prohibited the listing of Spot Bitcoin ETFs for retail investors. The Singapore MAS cited the exclusion of cryptocurrencies like Bitcoin as eligible assets for ETFs.

Why Will Singapore Never List Bitcoin ETFs?

A Singapore MAS spokesperson addressed the situation, stating, “Cryptocurrency trading is highly volatile and speculative in nature and is not suitable for retail investors.” However, despite the restrictions, retail investors in Singapore can engage in Spot Bitcoin ETFs listed abroad. Intermediaries licensed by the HKMA to handle overseas market-related investments can facilitate these retail investments.

Whilst, Collective Investment Schemes (CIS) available to Singaporean retail investors are regulated by the Securities and Futures Act, covering ETFs. However, limitations exist on the types of assets they can invest in, with Bitcoin and other digital payment tokens currently excluded.

Moreover, the spokesperson reiterated the unsuitability of cryptocurrency trading for retail investors. In addition, they advised caution for those trading Bitcoin ETFs in overseas markets, according to a report by Lianhe Zaobao, a Singapore news outlet.

Furthermore, in an effort to enhance investor protection and discourage speculative retail trading of cryptocurrencies, the Hong Kong Monetary Authority considered mirroring Singapore’s stringent approach to crypto. It initiated a public consultation on regulatory measures for the crypto industry.

The results and new measures were released in two phases in July and November last year. Moreover, Hong Kong is set to roll out tightened crypto regulations and the results from the public review would play an important role. The proposal has already been made while the actual approval and implementation are pending.

Also Read: Just-In: Valkyrie Bitcoin ETF (BRRR) Soars 12% Pre-market As Rivals Extend Declines

U.S. Spot Bitcoin ETFs Debut In A Nutshell

Last week, on January 10, the U.S. SEC approved 11 Spot Bitcoin ETFs. These included major contenders like Grayscale‘s GBTC, BlackRock’s IBIT, and ARK 21Shares ARKB. In addition, VanEck, Valkyrie, Fidelity, WisdomTree, Franklin Templeton, Hashdex, and Invesco Galaxy joined the race.

After approval, these ETFs went live on January 11 and recorded a trading volume of over $4.6 billion. Initially, most of these ETFs gained tremendous value. However, the second day saw a pullback as all the Spot Bitcoin ETFs extended in the ‘red’. Moreover, further losses were recorded this week as these ETFs have been registering continuous declines.

Also Read: BlackRock’s Strategy Poised to Spike Bitcoin Prices, Expert Says