Malaysia’s Affin Bank is set to introduce the nation’s inaugural Islamic digital asset fund, as reported by local outlet StarBiz. Scheduled for release in the third quarter of this year, this initiative will be realized in collaboration with an asset management firm. Calvin Goon Cheng Yu, head of wealth management, emphasized that Shariah-compliant funds, also known as Islamic funds, strictly adhere to Islamic law by avoiding interest entirely.
Goon highlighted the current market conditions, noting that the recent downturn presents an opportune moment for digital asset acquisitions, despite Bitcoin’s price dipping from $69,000 to $60,000. He expressed confidence that the Islamic product will provide a robust avenue for diversifying investments beyond traditional assets such as stocks, bonds, and gold.
A spokesperson from Affin Bank confirmed these plans, which were discussed during a press conference held on Monday as part of the AFFIN INVIKTA x Malaysia’s Top 30 Women of Excellence Awards 2024 event.
Affin Bank recently partnered with local investment firm Cross Light Capital to launch Malaysia’s first digital asset fund, the Performa Digital Asset Fund, targeting affluent clients. This exclusive fund grants access to digital assets through exchange-traded funds (ETFs) and products (ETPs), investing in assets like Bitcoin, Ether, and companies linked to blockchain technology.
Despite initial interest amidst the current market downturn, the fund has yet to fully take off, according to Goon. Affin Bank aims to increase the fund’s assets under management (AUM) to at least US$30 million by promoting both conventional and Islamic versions of the fund.
Looking ahead, Affin Bank plans to introduce additional digital asset products to attract younger investors. Goon remarked on this strategy, noting the increasing participation of younger demographics in the market and Affin Bank’s commitment to appealing to a different segment with innovative offerings.
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