Malaysia's Halogen Capital is preparing a Shariah-compliant Bitcoin exchange-traded fund (ETF) that could become the country's first digital-currency ETF, potentially opening a new route into cryptocurrency for retail and institutional investors.
Founder and CEO Hann Liew outlined the plans in an October 5 interview with The Edge Malaysia, saying the fund could begin trading on Bursa Malaysia before the end of 2026, subject to regulatory approval.
The proposed listing comes as Asian markets expand their exchange-traded investment offerings beyond traditional equities, sukuk and gold.
Malaysia Opens the Door to Bitcoin ETFs
Malaysia's Securities Commission introduced revised ETF guidelines on March 2, 2026, establishing a regulatory framework for digital-currency ETFs.
The changes allow investment managers to offer cryptocurrency exposure through regulated exchange-traded products, subject to requirements covering custody, risk management and the underlying digital assets.
For Halogen, the opportunity extends beyond cryptocurrency investors.
An ETF would allow investors to access Bitcoin through an existing Bursa Malaysia brokerage account without independently managing digital wallets or cryptocurrency exchange accounts.
Institutional investors could also integrate Bitcoin exposure into traditional investment portfolios, simplifying administration and portfolio monitoring.
Why Shariah Compliance Matters
Malaysia already has an established regulatory foundation for Islamic digital asset investment.
The Securities Commission's Shariah Advisory Council classified Bitcoin as Shariah-compliant in July 2020, providing a basis for regulated investment products that meet its requirements.
However, the proposed ETF would still need to satisfy applicable Shariah governance and product-structure standards.
Potential arrangements include holding underlying Bitcoin and allowing in-kind creation or redemption of ETF units, although Halogen has not confirmed the final structure.
As Nukoud explained in Beyond the Label: Due Diligence for Shariah-Compliant ETFs, investors must examine both the underlying asset and the ETF's operational structure before assessing compliance.
Halogen Targets RM1 Billion in Assets
Halogen, Malaysia's first licensed digital asset fund manager, reported reaching RM500 million ($120 million) in assets under management in September 2026.
The company is targeting RM1 billion in AUM, with its proposed Bitcoin ETF expected to contribute significantly toward that ambition.
Its existing investment offerings include the Halogen Shariah Bitcoin Fund, alongside Ethereum and diversified cryptocurrency strategies.
Unlike a traditional unlisted fund, an ETF could expand Halogen's potential distribution through Bursa Malaysia's established trading infrastructure.
What It Means for GCC and Islamic ETF Investors
The proposed launch illustrates the growing diversification of Shariah-compliant investment products across Asian markets.
Indonesia recently introduced the KIM Gold ETF Sharia, while Nukoud's Q3 2026 Shariah ETF Report documents the broader expansion of Islamic equity, sukuk and commodity ETFs.
The cryptocurrency ETF market is also attracting investment managers in the Gulf. Canadian issuer 3iQ recently secured in-principle approval in Abu Dhabi, strengthening its regional institutional presence.
For GCC investors, a Malaysian Shariah Bitcoin ETF would introduce another potential international investment option, although access would depend on brokerage arrangements, regulatory permissions and the fund's eventual terms.
The next milestones are regulatory approval, confirmation of the ETF's structure and announcement of its listing date.
