Cryptocurrency ETFs are becoming more popular, and Melanion Capital has been given the green light to launch a Bitcoin ETF for European investors
Melanion Capital gets approval to launch a Bitcoin ETF
French asset manager Melanion Capital has obtained the regulatory approval to launch an exchange-traded fund (ETF). The ETF will track the performance of the leading cryptocurrency and will be available to investors across Europe.
According to the investment firm, the Melanion BTC Equities Universe Ucits ETF is optimistic of meeting the EU standards, dubbed as “undertakings for the collective investment in transferable securities.” This implies that it would be available to investors across the European Union.
The asset manager said, “While there have been many bitcoin-backed exchange-traded products listed in Europe, most European regulators apply a look-through approach, rendering them ineligible for most institutional investors due to their investment restrictions.”
Melanion added that the ETF would track the performance of stocks such as mining firms Argo Blockchain, Riot Blockchain and Hive Blockchain, in addition to crypto investment firm Arcane Crypto. The ETF is set to be listed on Euronext in Paris, with a charging fee of 0.75%.
US left behind in the Bitcoin ETF race
With the Melanion Bitcoin ETF set to launch in Europe, the United States is currently behind some of the other leading economies in this aspect. Canada and Brazil are some of the leading countries in terms of cryptocurrency ETF adoption.
So far, both Canada and Brazil have approved Bitcoin and Ether ETFs. The United States SEC currently has nine Bitcoin and two Ether ETF applications under review.