Paris-based fund management company Melanion Capital has launched the first exchange-traded fund (ETF) to track the price of bitcoin under UCITS rules, approved by the European Union.
The new European ETF that follows Bitcoin (BTC), called "BTC Equities Universe UCITS ETF» will track the price of cryptocurrency on the markets with a 90% correlation, the issuing company Melanion Capital reported. According to the company, this new crypto ETF is the first to be launched in the region approved by the Autorité des Marchés Financiers (AMF), the French securities regulator, under the rules Undertakings for the Collective Investment in Transferable Securities (UCITS) which set out the European Union guidelines for asset management companies and collective investment funds.
Paris-based Melanion Capital explained that the “BTC Equities Universe UCITS ETF” will be available to all interested investors in the European Union who want to gain exposure to bitcoin, the industry’s leading cryptocurrency by market cap. Its new investment fund is a first for bitcoin and the crypto industry, it explained, as it is the first to be compliant under EU standards as an undertaking for collective investment in transferable securities (UCITS).
Likewise, the firm noted that through this ETF investors will be able to gain exposure to the shares of various companies that participate in the world of cryptocurrencies, Specifically, the new ETF will track a total of 30 stocks of crypto companies focused on bitcoin investment, bitcoin mining, and technology. Blockchain; among those he mentioned are MicroStrategy, Marathon Patent Group, Riot Blockchain, Argo Blockchain, Galaxy Digital and Voyager Digital.
The BTC Equities Universe UCITS ETF will be listed on the Euronext stock exchange in Paris, with a management fee of 0,75%.
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UCITS rules
En statements Speaking to the Financial Times, Jad Comair, CEO of Melanion Capital, said that it was a challenge for the company to get the financial authorities to authorize the creation of the “BTC Equities Universe UCITS ETF”, but that its incorporation under UCITS rules is an achievement for the entire crypto industry. Comair clarified that the regulatory environment surrounding bitcoin and other crypto assets is not the most favorable at the moment, but that clear regulations will help to generalize cryptocurrencies in the future and guarantee investors reliable products.
«The ETF was a real challenge because of the sensitivity and politics currently surrounding bitcoin and bitcoin investing», Comair said.
UCITS rules are the international gold standard and the “passport” for all investment fund and asset management companies. Likewise, the CEO of Melanion Capital stated that the new ETF consolidates its expansion into the world of cryptocurrencies and digital assets.
Transparency and reliability
According to Cyril Sabbagh, head of exchange-traded funds at Melanion Capital, the new crypto ETF from the Parisian fund management firm will allow investors to participate in the value opportunities offered by the crypto industry with a high level of transparency and reliability, minimizing potential risks.
Investment diversification is also one of the benefits that this ETF offers its investors, allowing them to close the gap that exists between cryptocurrencies and traditional investments.
The companies selected by Melanion Capital are those with the highest exposure and correlation with bitcoin. For example, MicroStrategy is the largest institutional investor in bitcoin, with more than 105.000 BTC on its balance sheet, valued at around $4.400 billion. Marathon Patent Group, Riot Blockchain, and Argo Blockchain are three of the largest and most important bitcoin mining companies in the industry in the United States and Europe. On the other hand, Galaxy Digital is one of the most recognized digital asset managers worldwide, seeking to institutionalize and democratize access to cryptocurrencies and blockchain by providing new institutional-grade digital financial services; while Voyager Digital is focused on driving the adoption of cryptocurrencies in the digital payments industry.
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