French fund manager Melanion Capital has announced that it has received approval for a regulated Bitcoin ETF in accordance with European laws. According to the report of the Financial Times, this new fund of Melanion Capital will be traded in a 90% correlation with Bitcoin.
The fund will also track an index of stocks of 30 companies, among them crypto mining and blockchain. Among them are important companies such as Riot Blockchain, Galaxy Digital and Voyager Digital. While Europe has paved the way for cryptocurrency ETPs, an ETF is unlikely to be launched any time soon due to the region’s tight regulatory framework.
Although the new ETF released is adapted to cryptocurrencies, it is difficult to talk about a legal framework that points to Bitcoin exactly. Also, Melanion Capital’s ETF is not the first product to follow Bitcoin. While Wisdom Bitcoin ETP is not a security, it operates as one of the financial products that track Bitcoin.
Cyril Sabbagh, Chairman of the Melanion Capital ETF, argues that the new product is a better option than a straight Bitcoin investment. The president states that behind this thought, there are reasons for concern for institutions, such as the loss of tokens or piracy. After Canada and Europe, the United States is thought to approve a Bitcoin ETF.
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