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Bitcoin equity exchange-traded funds (ETF) made it on Euronext Amsterdam Stock Exchange. This new ETF exposes investors to a range of Bitcoin-related company stocks for investments.
On June 22, Melanion Capital Bitcoin Equities ETF started trading on the exchange. The ETF from the French Investment company is bringing an equities-based investment method into the Bitcoin ecosystem.
The Functionality Of The ETF Index
The ETF would track the Melanion Bitcoin Exposure Index as part of its intrinsic functionality. This Index is a unique basket of American and European stocks closely linked to the market prices of Bitcoin.
Further, the ETF is compliant with the regulatory framework set by the European Commission for managing and trading mutual funds. So, it complies with the Undertakings for the Collective Investment in Transferable Securities (UCITS).
UCITS funds provide the requirements on regulation and investors’ protection necessary for investment companies in the registration and sale of trading products across the European Union.
The CEO of Melanion Capital, Jad Comair, commented on the company’s expansion to the Euronext Amsterdam Exchange. Jad Comair noted that the move offers Dutch investors a transparent and regulated approach to engage in the Bitcoin ecosystem.
Comair mentioned that the Dutch market had indicated a huge interest in digital assets before now. So, Melanion’s expansion would satisfy their quest by providing great investment exposure secured within a regulated framework.
Components Of Melanion Capital’s Bitcoin ETF Exposure Index
Melanion Capital is an investment company based in Paris, France. It offers a wide range of investment solutions through a revolutionary and innovative approach.
The Bitcoin Exposure Index of Melanion Capital aims to maintain a correlation with the BTC market prices. However, the firm is yet to indicate a minimum correlation threshold. Interestingly, the Index includes stocks from prominent and reputable entities across Europe and America.
The companies maintain significant investments in different sectors, such as Bitcoin holdings, mining operations, and even crypto exchanges.
Some of the firms include MicroStrategy, notable for its large Bitcoin portfolio. As of April 2023, the firm was reported to have accumulated over 140,000 BTC tokens worth over $12.6 billion.
The Index contains stocks of some mining firms like Riot, Hut8, and Marathon Digital. Also, it comprises stocks of crypto exchanges such as Coinbase and Robinhood. Melanion Capital’s BTC ETF is also listed on Euronext Milan and Euronext Paris stock exchanges.
Bitcoin ETFs received more traction and attention in June 2023. BlackRock, the biggest global asset manager, applied for a BTC spot ETF with the US Securities and Exchange Commission (SEC).
The application document noted that Coinbase Custody Trust Company would be the custodian of the BTC holdings of the funds. Also, the Bank of New York Mellon would be in the custody of the funds’ fiat. Notably, the asset manager is still waiting for the SEC’s response.
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