Paris-based asset manager Melanion Capital has received approval from the French regulator to launch an exchange-traded fund (ETF) on a basket of 30 stocks that “up to 90% correlate with the price of Bitcoin”. According to the Financial Times.
Melanion BTC Equities Universe UCITC ETF is regulated in accordance with the UCITS Directive (Undertakings for Collective Investment in Transferable Securities).
According to Winston Penhall, a Keystone Law solicitor who spoke to the publication, this is the first such fund focused on blockchain- and mining-company equities.
The Financial Times framed the development as the adoption of digital assets that regulators and institutional investors had not previously welcomed.
The product includes holdings in Argo Blockchain, Riot Blockchain, Galaxy Digital and Voyager Digital.
Regulated UCITS funds are regarded as the standard for investor protection and are intended for promotion across the EU.
Currently available European exchange-traded products, such as Wisdom Bitcoin ETP, do not meet UCITS requirements.
The Melanion BTC Equities Universe UCITC ETF will be listed on Euronext in Paris.
The management fee will be 0.75% of assets under management (AUM). The ETF’s calculation partner will be the German fintech startup Bita.
Earlier in July, Goldman Sachs filed with the SEC to launch an ETF based on DeFi- and blockchain-related companies.
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