French investment firm Melanion Capital has introduced a new Bitcoin equities exchange-traded fund (ETF). The new ETF provides Dutch investors with access to a diverse portfolio of Bitcoin-related company stocks.
Further, this pioneering Bitcoin Equities is now available for trading on the Euronext Amsterdam Stock Exchange as of June 22. By adopting an equities-based approach, Melanion Capital aims to facilitate investment in the growing Bitcoin ecosystem.
Tracking the Melanion Bitcoin Exposure Index
The Bitcoin Equities ETF is meticulously designed to mirror the performance of the Melanion Bitcoin Exposure Index. This custom index comprises a curated selection of European and American stocks that are closely linked to the market price of Bitcoin (BTC).
By investing in this ETF, investors gain exposure to a diversified basket of stocks with strong ties to the world of Bitcoin.
Also, Melanion Capital ensures that the ETF adheres to the European Commission’s Undertakings for the Collective Investment in Transferable Securities (UCITS) regulatory framework. This framework encompasses guidelines and safeguards that govern the management and trading of mutual funds.
By complying with UCITS regulations, the ETF can be marketed and traded across the European Union. This will additionally provide investors with regulatory protection.
Melanion Capital CEO Expresses Confidence in Dutch Market
Jad Comair, CEO of Melanion Capital, expressed enthusiasm about expanding their offerings to the Euronext Amsterdam exchange. He emphasized that the ETF offers Dutch investors a regulated and transparent solution for gaining exposure to the Bitcoin ecosystem.
Further, he acknowledged the Dutch market’s strong interest in digital assets. Comair also expressed delight in providing a secure investment opportunity within a regulated framework.
Stocks Included in the Bitcoin Exposure Index
The Bitcoin Exposure Index curated by Melanion Capital consists of different stocks. These stocks are majorly from companies that are heavily invested in Bitcoin holdings, cryptocurrency exchanges, and mining operations.
Notable components of this index include MicroStrategy, which, under the guidance of Michael Saylor, has acquired over 140,000 BTC valued at more than $12.6 billion as of April 2023. Additionally, the ETF features prominent exchange platforms like Coinbase and Robinhood. Mining firms such as Riot, Marathon Digital, and Hut8 are not left out also.
These carefully selected stocks offer investors a well-rounded exposure to the Bitcoin market.
While the Bitcoin Equities ETF aims to remain correlated with the market performance of Bitcoin, a specific minimum correlation threshold has not been established. Investors should consider this factor when evaluating the potential risks and rewards associated with the ETF.
Notably, Melanion’s Bitcoin Equities ETF is also listed on the Euronext Paris and Euronext Milan stock exchanges. This will further expand its availability to investors across multiple European markets.
BlackRock’s Application for Bitcoin Spot ETF
In June 2023, BlackRock, the world’s largest asset manager, made the headlines. This was as a result of filing an application with the United States Securities and Exchange Commission for a Bitcoin spot ETF. This move further underscores the growing interest and demand for Bitcoin-related investment products in the global financial landscape.