Crypto: Understanding ETFs within Malaysia’s digital landscape

KUALA LUMPUR: The world of cryptocurrency investing has long been seen as complex and volatile, but with the introduction of exchange-traded funds (ETFs), access to digital assets is becoming more mainstream and regulated.

Wong Wai Ken, Country Manager of StashAway Malaysia, explains how fintech is simplifying crypto investing in Malaysia while ensuring a responsible approach.

1. Meeting investor demand with a responsible approach

StashAway’s decision to include crypto ETFs on their platform isn’t just about chasing trends—it’s about addressing genuine client interest in innovative asset classes.

“The short answer to why we now have included it on our platform is, clients want it, right? We are a fund manager.

“Clients want access to new and exciting asset classes, but our role is to be the grown up in the room.”, said Wong Wai Ken.

This measured approach highlights that while excitement around new investments is important, proper risk assessment and professional guidance remain key.

2. Strengthening legitimacy through regulatory support

One of the main catalysts for the adoption of crypto ETFs is evolving regulatory support.

With regulatory developments in the U.S. including a pro-crypto stance from top officials, the crypto landscape is becoming clearer and more structured.

“When I say risk, I mean regulatory risk. In Malaysia, it is a regulated asset class in the US, ETFs have launched, and now with President Trump, he is positioning his people like the treasury secretary and the SEC chair, who are all pro crypto, to look at this and outline frameworks to be crypto friendly.”, added Wong.

This shift in regulatory tone is critical, as it not only reduces uncertainty but also paves the way for broader institutional participation.

3. Managing volatility with a measured allocation

While the allure of high returns in crypto is undeniable, the asset class remains exceptionally volatile.

Investors are encouraged to adopt a balanced strategy by limiting exposure.

In fact, StashAway recommends keeping crypto allocations to around 5% of a diversified portfolio.

This measured approach helps smooth out the wild swings that can occur when markets fluctuate dramatically.

Investing in crypto ETFs can offer attractive rewards over time, but the potential for rapid declines means that risk management is essential.

The volatile nature of digital assets makes it more important to ensure that crypto remains just one part of a broader, well-balanced investment strategy.

4. Diversification: Viewing crypto among many investment options

Cryptocurrencies are an exciting addition to the investment landscape, but they are only one piece of the puzzle. Traditional asset classes such as equities, bonds, gold, and real estate continue to play vital roles in building long-term wealth. Wong emphasises:

“Absolutely. That’s why I think you cannot ignore the fact that there are many other mainstream asset classes that you use to grow your wealth

"There’s equities, there’s bonds, there’s gold, there’s real estate.” he said.

This perspective underlines that crypto should be integrated into an overall portfolio strategy rather than seen as a standalone solution for rapid gains.

5. Simplifying crypto investing with ETFs

Prior to the introduction of ETFs, investing in cryptocurrencies often required navigating complex platforms, setting up wallets, and learning new interfaces, a daunting prospect for many mainstream investors.

ETFs have transformed this process by offering a familiar and simplified method of gaining exposure to crypto assets.

“ETFs just simplifies everything, and by simplifying it means that, oh, it’s very easy to get access to I’ll just buy it alongside how I bought my other investments.” Wong emphasised.

Although ETFs operate only during market hours (unlike the 24/7 crypto markets), this structure can help curb impulsive decisions, encouraging investors to focus on long-term growth rather than short-term volatility.

The integration of crypto ETFs in Malaysia marks a significant milestone in making digital assets more accessible, secure, and regulated.

With increased institutional interest and enhanced regulatory frameworks, cryptocurrency is evolving into a legitimate asset class.

However, as Wong advises, investors should approach crypto with caution, viewing it as a measured addition within a diversified portfolio rather than a sole pathway to wealth.