- Singapore has announced its decision not to permit the listing of spot ETFs in the country.
- Singapore asserts that crypto, including Bitcoin, does not meet the criteria for qualified ETF assets.
- Retail investors in Singapore can still trade spot Bitcoin ETFs listed overseas through local brokerages.
The Monetary Authority of Singapore (MAS) announced that it would not permit a spot Bitcoin exchange-traded fund (ETF) to be listed in the country, according to local news.
This move contrasts with the recent approval by the U.S. Securities and Exchange Commission (SEC) for the launch of several spot Bitcoin ETFs in the United States. Singapore asserts that cryptocurrencies, including Bitcoin, do not meet the criteria for qualified assets within the context of ETFs.
However, reports indicate that capital market intermediaries licensed by the MAS can offer overseas market-related investments while ensuring adequate risk disclosure and appropriate customer suitability assessments.
“Retail investors can still trade spot Bitcoin ETFs listed overseas through local brokerages,” the local news reported. A spokesperson from the regulatory authority clarified that collected investment schemes (CIS), which fall under the Securities and Futures Act regulation, include ETFs but don’t include Bitcoin or any other cryptocurrency.
According to the spokesperson, the local brokerages have limitations on the types of assets, and Bitcoin and other digital payment tokens weren’t deemed qualified for retail investors. The reason behind the disqualification, per the spokesperson, is the cryptocurrencies’ high volatility.
“Cryptocurrency trading is inherently highly volatile and speculative, unsuitable for retail investors. Those who still choose to trade Bitcoin ETFs in overseas markets should exercise extra caution,” the spokesperson added. Moreover, investors should consider the additional risks associated with trading in overseas markets.
In recent news, the spot Bitcoin ETFs amassed $10 billion in trading volume three days after their approval. Senior ETF analyst Eric Balchunas explained that of the 500 ETFs introduced in 2023, their total volume traded amounted to only $450 million.
Disclaimer: The information presented in this article is for informational and educational purposes only. The article does not constitute financial advice or advice of any kind. Coin Edition is not responsible for any losses incurred as a result of the utilization of content, products, or services mentioned. Readers are advised to exercise caution before taking any action related to the company.
 announced that it would not permit a spot Bitcoin ETF to be listed in the country.){kind=link}