Melanion Capital will launch a regulated exchange-traded fund in France on the Melanion Bitcoin Exposure Index, which follows the stock price of 30 cryptocurrency companies.
The French company Melanion Capital is about to launch an EU regulated fund that follows the price of shares of companies whose profitability is dependent on bitcoin. The fund will be listed on the Euronext Paris stock exchange. The distinguishing feature of the ETF is its UCITS status, which means that it is regulated throughout the European Union.
The ETF will be based on the Melanion Bitcoin Exposure Index, which follows the price of a basket of 30 stocks of companies strongly correlated with Bitcoin. The companies included in the index specialize in cryptoasset management, cryptocurrency banking, mining, blockchain projects, or keep cryptocurrencies on their balance sheets. The index includes Galaxy Digital, Riot Blockchain, Voyager Digital, and more.
Melanion Capital reported that ETFs are 90% correlated with the price of BTC. Cyril Sabbagh, ETF Leader at Melanion Capital, said:
“The main problems of bitcoin for institutional investors are hacking, storage complexity, security and crime. By investing in stocks of BTC-related companies, investors can achieve a diversified asset allocation. ”
Earlier this year, Bitwise launched an ETF that tracks the shares of leading cryptocurrency firms and companies with $ 100 million or more in liquid cryptoassets.
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