Halogen Shariah Defensive Bitcoin Fund

The latest cryptocurrency-focused fund by Halogen Capital is a markedly lower risk offering compared others in the portfolio of Malaysia’s first licensed digital asset fund manager, Executive Director Ahmad Fuad Alhabshi told IFN Investor.

Launched on the 3^rd March 2025, the Halogen Shariah Defensive Bitcoin Fund aims to capture bitcoin’s growth potential while reducing downside risk by reallocating to Islamic deposits during volatile periods, thereby building in a risk-managed capital preservation defense.

With bitcoin holdings capped at 30% of the fund’s net asset value and the rest acting as a built-in safety net of majority investments in Islamic deposits and money market instruments, Ahmad said this fund is classified as a medium to high risk investment.

“This is in contrast to the existing much higher risk Halogen Shariah Bitcoin Fund, which is 99% invested in bitcoin and [the] rest in cash.”

Unlike traditional investments, such as stocks and bonds, the cryptocurrency market is not heavily regulated. This lack of oversight can lead to increased volatility, as there are fewer checks and balances in place to prevent large price movements, explained Ahmad.

Offered to sophisticated investors, with a minimum initial of RM10,000 (US$2,254.03) and subsequent RM1,000 (US$225.4) subscriptions, the new defensive bitcoin fund may also invest in units or shares in Islamic collective investment schemes with similar goals. It may use Islamic derivatives to hedge or protect the value of its assets during adverse market conditions.

The fund will invest in bitcoins traded on digital asset exchanges registered with the Securities Commission Malaysia and other trading platforms as approved by a Shariah advisor.

A substantial portion of the fund’s digital asset accounts would be kept by the trustee at all times. These accounts are protected with cryptographic security, multiple layers of protection, multi-factor authentication and private key segmentation protocols.

As the fund is a closed-ended wholesale fund with a two-year investment period, the subscription and sale of the units of the fund is allowed only during the 45 days offer period from the 3^rd March 2025.

“Subscription to this fund is possible via several channels and platforms, offered via partnerships Halogen Capital.”

This fund is not expected to make distributions. The fund manager Halogen Capital can trigger early termination if the total net return surpasses 10% of the offer price before the first anniversary or this figure exceeds 15% any time after the first year of operation.

As of the 25^th March 2025, the fund’s assets under management stood at RM9.19 million (US$2.07 million).

*Disclaimer:  The opinions and viewpoints expressed in the Fund Profile do not constitute as a recommendation for any funds highlighted. The information presented is not investment advice and should not be treated as such.