French asset manager Melanion Capital won regulatory approval to launch an exchange-traded fund (ETF) tracking the price of bitcoin for investors across the European Union (EU).
- The Paris-based firm received approval from the French regulators to launch a fund that will track a basket of up to 30 stocks with a 90% correlation to bitcoin's price, according to an emailed statement Wednesday.
- The Melanion BTC Equities Universe Ucits ETF has been determined by regulators to meet EU standards, known as "undertakings for the collective investment in transferable securities" (UCITS), meaning it will be available to investors across the bloc, an EU first for a bitcoin-correlated fund.
- "While there have been many bitcoin-backed exchange-traded products listed in Europe, most European regulators apply a look-through approach, rendering them ineligible for most institutional investors due to their investment restrictions," Melanion said.
- The fund will track stocks such as mining firms Argo Blockchain, Riot Blockchain and Hive Blockchain as well as crypto investment firm Arcane Crypto.
- The weighting of the fund will be determined by German fintech Bita, which provides software for the calculation of financial indexes and quantitative investment strategies.
- The fund will be listed on Euronext in Paris charging a fee of 0.75%.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2023, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.