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The first regulated Bitcoin fund comes to France

French asset management firm Napoleon AM has launched a new fund tied to Chicago Mercantile Exchange’s (CME) fiat-settled bitcoin futures. The “Napoleon Bitcoin Fund” began trading on Dec. 6 with a minimum of €100,000 ($110,000) buy-in for professional investors, who must reside in France, according to the prospectus. It is the first bitcoin fund released by Napoleon AM.

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This picture show a woman holding some chinese coins.

Napoleon AM’s new “Bitcoin fund” represents a significant moment for France. The creation of a fund focused on cryptocurrencies, especially BTC, has been approved by the countries authorities and is the first of its kind as it offers investors with a minimum buy-in of $111,000 (€100,000) the opportunity to invest in a regulated Bitcoin financial product.

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BTC fund approved by regulators

As reported by Les Echos, the BTC fund of Napoleon Asset Management has been approved by the Financial Markets Regulator (FMR) in France. The fund will be aimed exclusively at institutional investors who must have at least $111,000 (€100,000) available for investment.

The BTC fund is the first of its kind in France as it is regulated and 100% cryptocurrency-oriented. The fund is based on the performance of futures contracts listed on the Chicago Mercantile Exchange (CME). Therefore, no real BTC is delivered on the expiry date, but the underlying was paid for in fiat currency. This is a solution preferred by institutional investors.

Although the first French company to offer crypto products was Tobam at the end of 2017, Napoleon Asset Management is the first company to offer a regulated product.

2019: the year for institutional infrastructure

The year 2019 is marked by the continuous development of traditional financial products based on cryptocurrencies. Although institutional investors are still cautious, the fact that these products are being created is a sign of market development.

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Stéphane Ifrah, President of Napoleon AM, said in a press statement that the fund “is the culmination of discussions with the French regulator.” She adds: “We are proud to contribute to the institutionalization and democratization of digital assets through a unique regulated fund under French law.”

It remains to be seen how popular an investment vehicle tied to bitcoin futures will be with French investors.

Bitcoin ETF is awaiting approval

In the USA, the SEC is still waiting for the approval of a BTC ETF. However, it seems that some steps have been taken there this year as well.

However, Exchange Traded Products (ETPs) is already existing in Europe that allows investing in BTC and Co. in the traditional way. We can’t wait to see whether the creation of this new opportunity will drive another bull run.

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(Featured image by Sharon McCutcheon via Unsplash)

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Anne Kings is a reporter for the financial sector, often tackling Wall Street and shareholders' interests. She also covers the intersection of media and technology, and delves into interesting topics on entertainment. Sometimes she also writes about the cannabis industry, in particular CBD and hemp. She is currently based in New York.