Paris, France-based fund management company Melanion Capital has launched the first exchange-traded fund (ETF) to track the price of bitcoin under UCITS standards, approved by the European Union.
The new European ETF that follows Bitcoin (BTC)called “BTC Equities Universe UCITS ETF» will track the price of the cryptocurrency on the markets with a correlation of 90%, reported the issuing company Melanion Capital. As reported by 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) that establish 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 capitalization. His new investment fund is a first for bitcoin and the crypto industry, he explained, as it is the first to conform to European Union standards as an undertaking for collective investment in transferable securities (UCITS).
Likewise, the firm pointed out that through this ETF, investors will be able to gain exposure to the shares of several 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 investing, 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 standards
On statements Jad Comair, CEO of Melanion Capital, told the Financial Times that it was quite a challenge for the company to get the financial authorities to authorize the creation of the “BTC Equities Universe UCITS ETF”, but that its constitution under the UCITS rules is an achievement for the entire crypto industry. Comair clarified that the regulatory environment surrounding bitcoin and the rest of crypto assets is not currently the most favorable, but that clear regulations will help to generalize cryptocurrencies in the future and guarantee investors reliable products.
“The ETF was a real challenge due to the sensitivity and politics currently surrounding bitcoin and bitcoin investing”, Comair said.
The UCITS standards are the international gold standard and the “passport” for all companies that manage funds and investment assets. 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
As explained by the head of exchange-traded funds at Melanion Capital, Cyril Sabbagh, the new crypto ETF of 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 possible risks.
Investment diversification is also one of the benefits that this ETF offers its investors, allowing it to bridge the gap 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 sheets, valued at about $4.4 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, which seeks 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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