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%.
CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.