While the United States finally launched its first Bitcoin (BTC) futures-based exchange-traded fund (ETF) today, France is also getting closer to launching a major Bitcoin-related ETF.
Melanion Capital, a Paris-based alternative investment firm, is preparing to launch its Bitcoin-linked ETF product this Friday, according to CEO Jad Comair, who spoke to Cointelegraph on October 18.
The Bitcoin ETF, dubbed “Melanion BTC Equities Universe UCITS ETF,” will begin trading on France’s primary stock exchange, Euronext Paris, at 7 a.m. UTC.
The product, which will be traded under the ticker symbol BTC FP, will provide investors with Bitcoin exposure via a diversified basket of equities correlated to Bitcoin’s daily price movements.
“It’s traded on the Paris stock exchange, so it’s available to all investors, and we’re in the process of listing it all over Europe,” Comair explained, adding that there is a high demand for Bitcoin-related products in the region. “We’ve launched a plan to bring more institutional-grade crypto products to market,” he added.
According to Comair, the concept of BTC FP is similar to that of Volt Equity’s Bitcoin-linked ETF, which was approved by the United States Securities and Exchange Commission (SEC) in early October. Instead of directly tracking Bitcoin, both Melanion Capital and Volt Equity’s Bitcoin ETFs are linked to companies that are correlated with Bitcoin.
“They both share the same idea: structuring a Bitcoin ETF by investing in equities that hold Bitcoin rather than going through the difficult and burdensome route of directly holding Bitcoin,” Melanion Capital CEO explained.
This ETF will track the Melanion Bitcoin Exposure Index, which includes Michael Saylor’s software firm MicroStrategy, crypto mining firm Argo Blockchain, Mike Novogratz’s digital asset merchant bank Galaxy Digital, and others.
“Our ETF is Europe’s first thematic Bitcoin product to be approved.” “ETF is a big deal because it’s the most widely used and is covered by a variety of pension plans,” Comair explained.
The executive also mentioned that its ETF would bridge the crypto and institutional worlds. “The investment pockets of institutional investors have a lot of constraints to protect their customers,” Comair explained. “An ETF is one of the most eligible wrappers that matches these constraints.”
Melanion Capital’s Bitcoin-linked ETF was officially approved by France’s financial regulator, the Autorité des marchés financiers, in August.
The announcement comes as ProShares, an American ETF provider, prepares to launch its Bitcoin futures-based ETF on the New York Stock Exchange today. Valkyrie’s Bitcoin futures-based ETF is also expected to launch this week, according to Bloomberg analyst Eric Balchunas.