Kazakhstan has entered the global race for digital asset products with the launch of Central Asia’s first spot Bitcoin exchange-traded fund (ETF), backed by US-regulated crypto custodian BitGo. The Fonte Bitcoin Exchange Traded Fund (BETF) debuted on Wednesday on the Astana International Exchange (AIX), offering regulated Bitcoin access to a broad range of investors, including retail participants.
Launch Details and Management
The BETF is managed by Fonte Capital, an asset manager registered with the Astana International Financial Centre (AIFC). The fund is physically backed by Bitcoin held in custody by BitGo Trust, a US-based subsidiary of BitGo. The custodian already works with major US Bitcoin ETF issuers, including ARK Invest and 21Shares.
BitGo announced providing custody for BETF on Wednesday. Source: BitGo
AIX, which was founded in 2017 and is backed by the AIFC, the Shanghai Stock Exchange, the Silk Road Fund, and Nasdaq, announced that the BETF will provide indirect investment access to Bitcoin through regulated market infrastructure. The exchange currently handles around $130 million in monthly trades, modest compared with global leaders but significant for the region.
Institutional-Grade Custody in Focus
BitGo’s role marks the first time the platform has provided institutional-grade Bitcoin access to Central Asian investors. The company said it would offer custody services through “secure, US-regulated cold storage,” describing Kazakhstan’s ETF launch as a new era for the country’s digital assets sector.
However, neither Fonte Capital nor AIX mentioned BitGo in their official announcements. Requests for comment from the three parties remained unanswered at the time of publication.
A Double-Edged Sword for Infrastructure
Industry experts have welcomed the involvement of an experienced global custodian, though some have warned about over-reliance on foreign infrastructure.
Shady El Damaty, co-founder of human.tech by Holonym, noted that while BitGo brings instant credibility and investor confidence, the concentration of such infrastructure raises questions. “Ideally, countries should be building local custodians that meet the same security standards. That way, you’re not just importing financial infrastructure, you’re growing it at home,” he said.
Bakhrom Saydulloev, product lead at Mercuryo, agreed that strong domestic custody is key for financial sovereignty. “Right now, using a proven global custodian is the fastest route to credibility and foreign capital inflows,” he added.
Market Significance
The launch of the BETF is a milestone for Kazakhstan, a nation that has become an influential player in the crypto sector, particularly in Bitcoin mining. The ETF provides regulated access to Bitcoin for investors who previously lacked local options, bridging the gap between traditional finance and the digital economy.
“In regions where traditional finance has left huge gaps, tools like this can be a bridge, not just for investors, but for everyday people to start participating in the digital economy,” El Damaty said.
Source: AIX
While AIX’s trading volumes are far smaller than those of major exchanges such as Nasdaq, the introduction of a spot Bitcoin ETF demonstrates Kazakhstan’s ambition to position itself as a hub for regulated digital asset investment in Central Asia.
A Step Forward with Global Support
For now, BitGo’s involvement offers Kazakhstan an immediate credibility boost and a pathway to attract foreign investment. Over the longer term, experts suggest that developing local infrastructure will be essential to ensure the market’s independence and resilience.
