The Monetary Authority of Singapore (MAS) has stated that it does not intend to list cryptocurrency-related exchange-traded funds (ETFs) on local exchanges for retail investors.
This decision is rooted in the ineligibility of digital payment tokens like Bitcoin as assets for retail Collective Investment Schemes (CIS) under the Securities and Futures Act, which governs retail investor participation in Singapore.
While local retail investors are barred from investing in cryptocurrency-related ETFs, MAS notes that capital market intermediaries licensed by them can offer overseas market-related investments. However, these intermediaries must ensure proper risk disclosure and suitability assessments for clients. Retail investors still have the option to trade spot Bitcoin ETFs listed overseas using local brokers.
The MAS spokesperson emphasized the high volatility and speculative nature of cryptocurrency trading, deeming it unsuitable for retail investors. In Singapore, a “qualified investor” is an individual meeting specific financial criteria, such as financial assets exceeding $745,000, an income of at least $223,000 in the preceding 12 months, or a personal net worth exceeding $1.5 million, under certain conditions.
In contrast to Singapore’s position, the US Securities and Exchange Commission (SEC) recently approved the listing of 11 spot Bitcoin ETFs.
Other jurisdictions, like Hong Kong, have committed to expediting the processing of spot cryptocurrency ETF applications with prior approval from the US SEC. However, Thailand’s Securities and Exchange Commission clarified that there are no plans to authorize domestically-based spot Bitcoin ETFs.
Despite Singapore’s balanced regulatory approach to cryptocurrencies, the country maintains a strict stance against listing cryptocurrency-related ETFs on local exchanges. Notably, recent developments include the introduction of an AI-driven actively managed ETF by Lion Global Investors and Nomura Asset Management, providing exposure to the Japanese stock market.
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