Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

French Fund Manager Unveils EU-Regulated Bitcoin-Stocks ETF

Published 08/05/2021, 03:48 AM
Updated 08/05/2021, 04:09 AM
© Reuters French Fund Manager Unveils EU-Regulated Bitcoin-Stocks ETF

(Bloomberg) --

Paris-based alternative investment manager Melanion Capital received regulatory approval for an exchange-traded fund seeking to track the Bitcoin price and which satisfies key European Union rules.

The ETF meets the UCITS standard, a regulatory benchmark important to institutional investors, according to a company statement. The fund will invest in a basket of stocks intended to have a correlation of up to 90% with the Bitcoin price.

Cyril Sabbagh, head of ETF at Melanion Capital, argued the new product is a better option than a straight Bitcoin investment because it addresses the risk of loss or piracy of tokens, a key worry for institutions.

A number of crypto-linked funds have been launched this year. In the U.S., regulators have yet to approve an ETF investing directly in digital tokens, though more than a dozen companies are looking to start one. About 10 have filed for authorization since the end of 2020, according to a tally kept by Bloomberg Intelligence.

©2021 Bloomberg L.P.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.