The National Bank of Bahrain presented the launch of its very first Bitcoin investment fund systematized for institutional investors at the Fintech Forward 2024 event.
The new fund is designed for large entities like banks, pension funds, and corporations rather than individual retail investors. The fund specifically targets investors in the Middle East’s Gulf Cooperation Council (GCC), which includes six countries: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia, and UAE.
The fund will ensure that investors won’t lose any of their initial investments, making it a low-risk option for them to access Bitcoin.
Funds Creation and Partnerships
A partnership between the National Bank of Bahrain and ARP Digital led to the funds creation. The fund has a unique feature that offers a capped gain — meaning there is a limit to how much profit investors can make — but also ensures 100% protection from losses. In simple terms, this gives institutional investors a way to potentially benefit from Bitcoin’s rise without the fear of losing money.
According to Abdullah Kanoo, co-founder and co-CEO of ARP Digital, it is a new way for institutional investors to approach digital assets.
Read Also: Morocco Turns to AI, Distributed Ledger Technology to Achieve the Digital 2030 Strategy Goal
In his words, “This structured investment opens new doors for investors seeking a calculated approach to digital assets,”
He added, “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.”
Hisham Alkurdi, the Group Chief Executive at NBB, also made some comments, emphasizing that the new product aligns with the bank’s commitment to delivering innovative solutions for its clients.
He noted, “This product underscores our focus on offering our wealth management clients innovative and secure avenues to diversify their portfolios in an evolving investment landscape.” His statement highlights NBB’s ongoing leadership in financial innovation within the GCC region.
Bahrain’s Growth in the Digital Asset Sector
Bahrain’s tireless efforts have not been in vain as it’s gradually becoming the destination for digital assets businesses. The country has been able to create an
“innovation-friendly crypto and fintech ecosystem, which has involved putting in place clear regulation that balances consumer protection with commercialization,”
according to the words of Crypto.com chief operating officer Eric Anziani.
Bahrain’s approach to clear regulations makes it an attractive location for crypto businesses, as in 2023, Crypto.com, a major cryptocurrency exchange, was given a license by Bahrain’s central bank to operate in the country. Hence, becoming part of other exchanges like Binance and BitOasis, which have been operating in Bahrain since 2022.
What You Should Know
According to a recent Chainalysis report, the Middle East and North Africa region (MENA) accounted for 7.5% of global cryptocurrency transaction volume between July 2023 and June 2024, totaling $338.7 billion during this period. Institutional and professional investors accounted for the vast majority of the transactions.
Onchain traffic in the region is primarily conducted through centralized exchanges, although the United Arab Emirates and Saudi Arabia have seen “high interest” in decentralized platforms.
This only shows the rise of institutional crypto investment and the continuous growth of crypto adoption in the region.
Discover more from DiutoCoinNews
Subscribe to get the latest posts sent to your email.
