First Bitcoin Fund Compliant with EU Regulations

The first Bitcoin fund compliant with EU regulations will be set up in France. Melanion Capital is preparing to set up this fund.

Paris-based Melanion Capital is preparing to issue a fund that complies with European Union regulations and closely monitors the price of Bitcoin. Thus, investors in the EU will be able to invest in the highly volatile crypto asset. Melanion Capital, which manages funds based on derivatives and algorithmic trading, received approval from French regulators to launch an exchange-traded fund in line with EU standards. The fund will hold shares of 30 companies operating in the field of cryptocurrency mining and blockchain technology and will have a 90% correlation with Bitcoin prices. Winston Penhall, a fund attorney at Keystone, said: "I've never seen such a fund focused on digital assets that comply with EU standards. It's still unclear how regulators view Bitcoin and other cryptocurrencies." Funds that comply with EU standards, known as UCIT funds, mean the reflection of the international gold standard in the world of funds. Many national regulators argue that digital assets cannot be found in funds unless they are tied to a security. Companies that will take part in Melanion's fund include cryptocurrency miners Argo Blockchain and Riot Blockchain, Michael Novogratz's investment management company Galaxy Digital and brokerage firm Voyager Digital.