KUALA LUMPUR: StashAway, Malaysia’s leading digital investment platform, expects a portion of its 50,000 clients to explore investment opportunities in its newly introduced Bitcoin and Ethereum exchange-traded funds (ETF) offered through its regulated platform.
StashAway Malaysia country manager Wong Wai Ken said many investors who are sceptical about investing in crypto can now do so confidently through the regulated fund manager, as the platform offers secure, safe, and easy investing in crypto assets.
“We see the market for crypto as positive following the re-election of Donald Trump as US president, which augurs well for the development of crypto.
“Many of our clients have expressed interest in the long-term potential of major cryptocurrencies like Bitcoin but have been hesitant because of security concerns or the complexities of navigating crypto exchanges. We are now offering them a familiar and safe way to diversify their portfolios by incorporating crypto through a platform they already know and trust,” he said at a media briefing today.
According to news report, the US Securities and Exchange Commission’s (SEC) new leadership has created a task force to develop a regulatory framework for crypto assets, in the first major move by Trump’s new administration to overhaul crypto policy.
Trump, who campaigned on promises to be a “crypto president”, has pledged to reverse an industry crackdown under former president Joe Biden’s SEC, which sued multiple crypto companies, including Coinbase, opens new tab and Kraken, alleging they had flouted its rules.
The report noted that the task force’s focus will be to help SEC draw clear regulatory lines, provide realistic paths to registration, craft sensible disclosure frameworks, and deploy enforcement resources judiciously.
StashAway’s launch of Bitcoin and Ethereum ETF comes at a pivotal moment in the crypto market, marked by growing institutional adoption as the price of Bitcoin crosses the US$100,000 (RM444,000) milestone.
With the newly inaugurated US presidential administration signalling support for crypto-friendly regulations, investors have shown renewed interest in this new and growing asset class.
Wong said that despite the growing adoption of cryptocurrencies by mainstream and institutional investors, many individuals remain cautious due to the complexities involved, such as the risk of losing funds if a private key for their crypto wallet is lost or compromised.
Crypto exchanges also often have complex fee structures, including trading fees, withdrawal fees, and gas fees which can fluctuate unpredictably. However, on the positive side, multiple studies have shown that a small allocation to Bitcoin in a diversified portfolio can enhance long-term returns without necessarily heightening volatility.
Over the long term, a 5% allocation to Bitcoin in a traditional 60/40 portfolio can uplift returns while improving the risk-to-reward ratio.
To help investors manage their crypto exposure more easily and securely, StashAway is adding Bitcoin and Ethereum ETF to its Flexible Portfolios. This existing feature lets clients customise their own portfolios from over 70 ETF across various asset classes. With the addition, investors can create diversified portfolios that include both crypto and traditional assets such as equities, bonds, and gold.
In line with StashAway’s fee structure, Flexible Portfolios offer a clear and simple annual management fee ranging from 0.2% to 0.8%, with no lock-in period or minimum investment requirement. For portfolios containing only a single ETF, the management fee is a flat 0.3% per year. The crypto ETF available in Flexible Portfolios – Fidelity Wise Origin Bitcoin Fund and Fidelity Ethereum Fund – carry an annual expense ratio of 0.25%.
