Malaysia’s Affin Bank intends to introduce the country’s first-ever Islamic digital asset fund in the third quarter of this year. The bank will partner with an asset management firm to achieve this goal, according to Calvin Goon Cheng Yu, head of wealth management. Islamic funds, also known as Shariah-compliant funds, adhere to Islamic law and avoid interest altogether. Goon believes that the current market slump, with Bitcoin dropping from $69,000 to $60,000, presents a buying opportunity for digital assets. He also sees the Islamic product as a means to diversify investments beyond traditional stocks, bonds, and gold. Affin Bank has previously collaborated with Cross Light Capital to launch Malaysia’s first digital asset fund, the Performa Digital Asset Fund, targeting affluent clients. This fund provides access to digital assets through exchange-traded funds (ETFs) and products (ETPs), investing in Bitcoin, Ether, and blockchain-related companies. The bank aims to grow the assets under management (AUM) of the fund to $30 million by combining both the conventional and Islamic versions. It also plans to launch more digital asset products in the future to attract younger investors.
