Melanion Capital launches Europen regulated exchange-traded fund (EFT) to closely monitor the price of bitcoin with a basket of stocks.
Melanion Capital, an established French investment management firm, launches an exchange-traded fund to track the price of bitcoin with variety of stocks, according to the Financial Times.
Its shares will be trading on Paris stock market, Euronext.
This ETF is unique because of its UCITS status, which makes it regulated across the entire European Union.
The launch of such investment products shows the growing interest in Bitcoin, where previously such Bitcoin Products were discouraged or restricted by institutional investors and financial regulators.
Winston Penhall, a London fund lawyer at Keystone Law, stated that the newly issued ETF was the first crypto-related product to be licensed under the UCITS Directive.
“I have not yet seen any funds launched that are focused on digital assets, under the UCITS umbrella.”
While strict restriction limit Melanion Capital from offering access to the real thing, there is a 90 percent correlation ratio between its index and the price of Bitcoin.
Funds regulated by UCITS are available for sale throughout the EU. UCITS is considered as a standard in fund regulation. These funds are appealing to investors because they offer high levels of protection. Though the newly released ETF is tailored in some manner to cryptocurrencies, This is still not a fully functional and established Bitcoin-addressed legal framework.