Affin Bank to Launch 1st Islamic Digital Asset Fund

Malaysia’s Affin Bank intends to introduce an Islamic variant of its Cross Light Capital Performa Digital Asset Fund by the third quarter of this year.

Calvin Goon Cheng Yu, the director of wealth management, was quoted by local outlet StarBiz on Tuesday as stating that this objective will be accomplished in collaboration with an asset management firm.

Shariah-compliant funds, also known as Islamic funds, provide investment opportunities that adhere to Islamic law. These funds are exempt from interest, as it is prohibited by Shariah law.

The executive informed the publication that the current market downturn, which has seen Bitcoin plummet from $69,000 to $60,000, presents a purchasing opportunity for digital assets.

Additionally, he is confident that the Islamic product will effectively diversify investments beyond conventional equities, bonds, and gold.

The comment was confirmed by an Affin Bank spokesperson, who stated it was made during the press conference for AFFIN INVIKTA x Malaysia’s Top 30 Women of Excellence Awards 2024 on Monday.

Digital Asset Fund With Cross Light Capital Targets Affluent Clients

Last month, Affin Bank collaborated with Cross Light Capital, a local investment firm, to establish Malaysia’s inaugural digital asset fund. The Performa Digital Asset Fund is designed to cater to affluent clients and provides them access to digital assets through exchange-traded funds (ETFs) and products (ETPs).

The fund exclusively invests in publicly traded investment instruments, including Bitcoin, Ether, and companies associated with blockchain technology.

This exclusive offer is exclusively available to the Affin Invicta suite of Affin Bank and is accessible by invitation only. Additionally, the fund maintains investments in prominent organizations such as Ubisoft and Coinbase.

Malaysia’s Affin Bank Targets US$30m AUM with Dual Digital Asset Funds

Goon stated that the fund has yet to experience significant growth despite the market decline and initial interest. Affin Bank’s objective is to increase the product’s assets under management (AUM) to a minimum of US$30 million by integrating both the conventional and Islamic variants of the fund.

Affin Bank intends to introduce additional digital asset products to appeal to younger investors.
“Younger demographics are increasingly joining the market,” Goon informed the outlet. “Affin, as a non-legacy bank, strives to attract a distinct market segment.” Consequently, we are creating more appealing products to meet market demand.