Kazakhstan Approves Central Asia’s First Spot Bitcoin ETF on Astana Exchange

Highlights:

• Kazakhstan approves Central Asia’s first spot Bitcoin ETF named BETF.
• The ETF is fully backed by physical bitcoin held by BitGo.
• BETF is listed on the Astana International Exchange under AIFC regulation.

Kazakhstan has made a significant leap in the regional digital finance market by launching Central Asia’s first spot Bitcoin ETF. The fund, called BETF, officially started trading on August 13 on the Astana International Exchange (AIX). Fonte Capital, an Astana-based wealth manager, manages the ETF, having received registration under the Astana International Financial Centre (AIFC) in 2022.

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BETF, unlike futures-based ETFs, is physically backed with real-life bitcoin, so it gives investors direct exposure to the price dynamics. The fund is also quoted in U.S. dollars and is available to retail as well as institutional investors in its non-exempt structure. BitGo Trust, a regulated custodian in the United States, stores the bitcoin in offline cold storage and offers custodial services. The assets are also insured up to $250 million, further increasing the security.

Kazakhstan is entering a new era for digital assets.

Fonte Capital has introduced Central Asia’s first spot bitcoin ETF on the Astana International Exchange.

The BETF fund is physically backed by bitcoin, with custody from BitGo Trust.

Through secure, U.S.-regulated cold… pic.twitter.com/CgDjZ6ZDaj

— BitGo (@BitGo) August 13, 2025

Birzhan Astayev, AIX Chief of Markets and Products, stated:

“This ETF marks the beginning of a transition in our financial markets. It is the first time regional and international investors are able to access Bitcoin in a completely regulated and transparent environment without touching the private keys or involvement with complex custody processes.”

Furthermore, BETF structure includes in-kind payment and is geared toward minimizing tracking error at a low total expense ratio. Using this setup, investors will monitor the performance of Bitcoin closely with minimal differences in prices.

Kazakhstan Pushes Forward as Regional Crypto Hub

This introduction of BETF is a part of the strategic movement of Kazakhstan to make the country a major crypto market in Central Asia. Following the mining ban in China in 2021, several miners moved to Kazakhstan because of its rich coal energy and crypto-friendly policies. The bitcoin mining share of the country once provided up to 15-18% of the world’s hash rate, making it a part of the global blockchain ecosystem.

Yerzhan Mussin, the CEO of Fonte Capital, also commented, saying,

“BETF provides a secure and smooth and regulated opportunity to get an exposure to bitcoin. Investors are no longer concerned with digital wallets, inheritance or risks of a counterparty.”

Whereas Kazakhstan has been more open and supportive, neighboring countries such as Uzbekistan and Kyrgyzstan have been very cautious. The legal framework within the AIFC enables the licensed exchanges, custodians and funds to operate in a transparent and investor-friendly environment.

More Crypto Developments in Kazakhstan

Kazakhstan keeps expanding its presence within the crypto ecosystem with new national projects. The government announced that it is developing a state-controlled crypto reserve of confiscated digital currency and state-associated mining operations. Additionally, the National Bank confirmed the reserve will be conducted by a specialized subsidiary arm engaging in alternative expenditures.

Moreover, the government is developing a national crypto card to allow citizens to make daily payments in digital assets. The card will enable smooth transfers of cryptocurrencies such as Bitcoin to the local currency during transactions. Consequently, this will enhance convenience and increase the use of digital payments in the country. Meanwhile, the sovereign wealth fund of Kazakhstan is considering adding cryptocurrencies like Bitcoin to its national reserves. This diversification strategy also includes relocating traditional holdings such as gold and foreign currencies to digital assets.

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