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.
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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First published in CryptoMonday, a third-party contributor translated and adapted the article from the original. In case of discrepancy, the original will prevail.
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