Kazakhstan Launches Central Asia’s First Bitcoin ETF

Kazakhstan has entered the global bitcoin investment market with the launch of Central Asia’s first spot Bitcoin exchange-traded fund (ETF).

The Fonte Bitcoin Exchange Traded Fund (BETF) started trading on August 13, 2025, on the Astana International Exchange (AIX), giving investors regulated access to the world’s largest scarce digital commodity.

The fund is managed by Fonte Capital, a Kazakhstan-based investment company registered under the Astana International Financial Centre (AIFC). It is physically backed by actual bitcoin and uses BitGo Trust, a U.S.-regulated custodian, to store its assets in institutional-grade cold storage.

The launch of BETF is a major milestone for Kazakhstan’s financial market and the region’s growing digital economy.

“This step contributes to Kazakhstan’s advancement as a key regional hub for regulated digital finance,” said Birzhan Astayev, managing director of markets and products at AIX.

“The debut of Kazakhstan’s first spot Bitcoin ETF opens a new chapter in the development of our capital market, bringing digital assets into the mainstream of the investment industry.”

The ETF is available to both retail and institutional investors and is priced in U.S. dollars. It allows investors to get exposure to bitcoin’s price movements without the hassle of private keys or exchanges.

Yerzhan Musin, CEO of Fonte Capital, said the product is designed for safety and accessibility. “We are confident that our fund will become a sought-after tool for those seeking to diversify their portfolios and gain access to a new category of financial instruments.”

Kazakhstan has become one of the world’s top bitcoin mining hubs since China banned bitcoin mining in 2021. The country has abundant coal-powered energy and favorable regulations, attracting miners and blockchain companies from around the world.

Authorities have since regulated the sector by introducing licensing requirements, tax rules, and a legal framework for digital assets.

The AIFC, based in Astana, is a special economic zone for financial services, and part of China’s Belt and Road Initiative to connect Central Asia’s markets with global investors.

Now Kazakhstan joins the U.S., Canada and Hong Kong in offering a regulated, physically backed bitcoin investment product.

One of the key features of the BETF is the custody. BitGo, a U.S.-based and regulated digital asset custodian, will hold the bitcoin backing the ETF. The company works with major U.S. Bitcoin ETF issuers, including ARK Invest and 21Shares.

“Kazakhstan is entering a new era for digital assets,” BitGo said in a statement. The company will safeguard BETF’s assets in “secure, US-regulated cold storage” with insurance coverage up to $250 million.

Experts say BitGo’s involvement brings credibility to Kazakhstan’s market.

The AIX, established in 2017 and backed by the AIFC, the Shanghai Stock Exchange, the Silk Road Fund and Nasdaq, does around $130 million in monthly trades, modest compared to global giants.

The exchange sees the BETF as a way to attract new investors and expand its offerings.