Crypto Currency News

European Union Approves BTC ETF, Pressures Grow in Washington

Melanion Capital will launch a fund of shares correlated to the price of BTC.

French financier Melanion Capital launched a new exchange-traded Bitcoin (BTC) fund (ETF), which will be regulated by the European Commission. The regulatory body approved the new fund in recent days, and in the United States there is increasing pressure on the Securities and Exchange Commission (SEC) to follow the same path.

According to local reports, the new Melanion ETF trades shares based on the price of BTC – with a correlation of up to 90% – and is issued under the investment fund of the Undertakings for Collective Investment in Transferable Securities (UCITS) of the European Union. The regulations framed there do not correspond to each country, but to the regional level.

See also  Bitcoin removes the possibility for governments to create currencies.

Cyril Sabbagh, ETF Director of Melanion Capital, celebrated the approval of the new ETF and highlighted the importance of this type of financial instruments to bring new investors closer to the crypto market. By eliminating some risks associated with direct trading with assets, such as piracy or misinformation scams, it raises the levels of trust among capitalists.

“To the investing in stocks that replicate the performance of Bitcoin, investors can achieve diversified asset allocation that was previously unavailable, ” said Sabbagh. He added: “Given the lack of correlation of Bitcoin with traditional assets and the UCITS character of the ETF, the allocators should certainly be interested.”

See also  Hedge funds spark optimism in the crypto market

On the other hand, Jad Comair, CEO of Melanion, acknowledged that the regulatory bids were a challenge for his company. The “sensitivity” currently surrounding the crypto market – and possibly the lack of experiences globally – could have been stones in the way.

The fund has several holdings, among which the shares linked to crypto mining stand out. Marathon Patent, Riot Blockchain, Hive Blockchain, Argo Blockchain, and Hut 8 Mining, are the main firms in play.

Across the Atlantic, in Washington, finance companies are still waiting for the SEC. The US agency has several ETF applications in the pipeline, but so far it has done nothing more than issue decision extensions. The firms hope that eventually a chain approval will be reached, which will lead to million-dollar investments in the market and skyrocket the price of BTC.

See also  Deutsche Bank: "Bitcoin is too important to ignore"
Tags
Back to top button
Close
Close