Singapore’s MAS Denies Listing Bitcoin Spot ETFs, Retail Investors Seek Overseas Options

Following The recent U.S. Securities and Exchange Commission (SEC) approval for Spot Bitcoin Exchange-Traded Funds (ETFs), Singapore’s Monetary Authority (MAS) has taken a divergent stance, opting to prohibit the listing of such ETFs for retail investors within its jurisdiction.

The MAS, Singapore’s financial regulatory body, cites the exclusion of cryptocurrencies like Bitcoin as eligible assets for ETFs.

A spokesperson from MAS emphasized the highly volatile and speculative nature of cryptocurrency trading, deeming it unsuitable for retail investors. Despite this prohibition, Singaporean retail investors can still access Spot Bitcoin ETFs listed abroad through intermediaries licensed by the Hong Kong Monetary Authority (HKMA) to handle overseas market-related investments.

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

Singapore’s MAS Caution and Advisory

The MAS spokesperson reiterated their caution against cryptocurrency trading for retail investors, advising prudence for those engaging in Bitcoin ETFs in overseas markets, according to a report by Lianhe Zaobao, a Singaporean news outlet.

In a parallel move, the Hong Kong Monetary Authority is contemplating adopting a similar stringent approach to crypto, aiming to enhance investor protection and curb speculative retail trading of cryptocurrencies. The authority initiated a public consultation on regulatory measures for the crypto industry, with results and new measures released in two phases in July and November of the previous year. Hong Kong is poised to roll out tightened crypto regulations, pending approval and implementation.

In contrast to Singapore’s cautious approach, the U.S. SEC approved 11 Spot Bitcoin ETFs on January 10. The approved ETFs include major players such as Grayscale’s GBTC, BlackRock’s IBIT, ARK 21Shares ARKB, VanEck, Valkyrie, Fidelity, WisdomTree, Franklin Templeton, Hashdex, and Invesco Galaxy. The ETFs went live on January 11, recording a substantial trading volume exceeding $4.6 billion.

While the initial days saw significant value gains for these ETFs, subsequent sessions witnessed a pullback, with many entering the ‘red.’ The trend continued this week as the ETFs registered continuous declines, reflecting the inherent volatility and dynamic nature of the cryptocurrency market.