Melanion Capital, the Paris-based independent alternative investment management company, has announced that its Melanion BTC Equities Universe UCITS ETF began trading on October 22nd on Euronext Paris under the ticker BTC FP and ISIN FR0014002IH8.
The launch marks the first time investors can gain exposure to the Bitcoin ecosystem via a fully-regulated UCITS ETF, and pioneers an equity-based approach to the asset class.
BTC FP has been approved by France’s Autorité des marchés financiers (AMF) and is designed to track the Melanion Bitcoin Exposure Index, a custom basket of 30 European and North American stocks, selected for being the most sensitive to the Bitcoin price.
“Investor demand for Bitcoin exposure is huge and continues to grow, but the lack of UCITS regulated products has been a real deterrent for many – until now,” explains Cyril Sabbagh, Head of ETF at Melanion Capital.
“Being able to invest in the Bitcoin transition story in a harmonised framework for investment funds that can be sold to retail investors throughout the EU, is the next natural step in this becoming a more mainstream asset class and thematic, and we are naturally delighted to be the first firm to make this dream a reality for the European investment community,” adds Jad Comair, CEO of Melanion Capital.
The Melanion Bitcoin Exposure Index comprises companies with sensitivity to Bitcoin, weighted according to it. Constituents are screened for liquidity before inclusion and capped at a maximum weighting of 10% to ensure the index remains diversified, investable and scalable.
Melanion expects BTC FP to achieve a high correlation to the Bitcoin performance, however, no minimum correlation threshold has been established and the index is not guaranteed to follow the price of Bitcoin itself, rising or falling.
The Melanion BTC Equities Universe UCITS ETF will initially be listed on Euronext with a TER of 0.75%.
This launch represents the first of several products and initiatives Melanion Capital is developing to give investors exposure to the Bitcoin Transition, which references the transition to a world in which Bitcoin and other cryptocurrencies are adopted as a useful and effective part of the wider financial ecosystem.
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