French asset managing firm Melanion Capital has launched the first EU-regulated Bitcoin exchange-traded fund (ETF).
According to a report by the Financial Times on Wednesday, the Melanion BTC Equities Universe Ucits ETF is one of the first of such products in the European market. It will allow investors to track the price of Bitcoin and several other stocks in the blockchain and crypto mining industry.
Commenting on the launch, Winston Penhall, a funds lawyer at Keystone Law in London, said:
I haven't seen any funds launched yet that are focused on digital assets under the Ucits umbrella.
For some context, UCITS (Undertakings for Collective Investment in Transferable Securities Directive) based funds are viewed as a standard in fund regulation. This makes them quite attractive to investors with a high level of protection.
It is worth mentioning that the Melanion Capital ETF is not the first product that tracks Bitcoin in the region. The $242 million Wisdom Bitcoin ETP already offers a similar product, although it is not categorized as a security.
The Melanion Bitcoin product will be listed on Euronext in Paris.
Surprisingly, while other regions are making progress with crypto ETFs, U.S. regulators have continued to delay their decision on allowing a Bitcoin product to launch in the region.