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National Bank of Bahrain launches first Bitcoin investment fund

National Bank of Bahrain launches first Bitcoin investment fund

GrafaGrafa2024/10/08 00:30
By:Mahathir Bayena

The National Bank of Bahrain (NBB) has introduced its first Bitcoin (CRYPTO:BTC) investment fund, specifically designed for institutional investors across the Gulf Cooperation Council (GCC) region, which includes Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and the UAE.

The fund, developed in partnership with digital asset firm ARP Digital, provides exposure to Bitcoin with gains capped at a predefined threshold and 100% loss protection on the downside.

Abdullah Kanoo, co-founder and co-CEO of ARP Digital, emphasised the strategic value of the fund, stating, “This structured investment opens new doors for investors seeking a calculated approach to digital assets. By leveraging our expertise in digital assets and NBB’s extensive reach in the financial sector, we have created a product that introduces Bitcoin exposure within a highly secure framework.”

Bahrain has been increasingly attracting digital asset businesses as part of its efforts to foster a crypto- and fintech-friendly environment.

According to Eric Anziani, COO of Crypto.com, the country has focused on creating clear regulations that balance consumer protection with commercialisation.

Crypto.com, Binance, and BitOasis are some of the exchanges that have already established operations in Bahrain, with Crypto.com obtaining its license in September.

In the broader GCC region, regulatory advancements continue to emerge.

Dubai’s Virtual Asset Regulatory Authority (VARA) issued comprehensive guidelines in 2023, providing regulatory clarity for Web3 companies.

The guidelines include rulebooks for virtual asset service providers (VASPs) and rules for issuing virtual assets.

According to a Chainalysis report, the Middle East and North Africa (MENA) region accounted for 7.5% of global cryptocurrency transaction volume between July 2023 and June 2024, totaling $338.7 billion.

Institutional and professional investors were responsible for the majority of these transactions, conducted primarily through centralised exchanges, though interest in decentralised platforms is growing in countries like the UAE and Saudi Arabia.

At the time of reporting, the Bitcoin price was $62,279.46.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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