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EU Regulators Approve BTC ETF by French Fund

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EU Regulators Approve BTC ETF by French Fund

A French fund management company received the green light from the EU for the creation of a BTC Stock ETF. 

Melanion Capital, based out of Paris, France, is now on track to create an exchange-traded fund (ETF) to monitor the price of BTC. This is a major development for a European business, as the proposed BTC ETF meets the stringent European Union rules. 

The standard the EU operates by is referred to as the UCITS standard. Formerly known as the Undertakings for Collective Investment in Transferable Securities Directive (UCITS), it sets the criterion for institutional investors. 

According to the company, the new BTC stock ETF looks at the risk of loss and piracy of tokens. To make the venture possible, Melanion Capital intends to invest in a number of stocks correlating to around 90% with the price of BTC. 

The fund defends the ETF as an overall safer option than investing in BTC. The reason being, explains Cyril Sabbagh, the head of ETF at Melanion Capital, is that the ETF assesses risk and piracy. These are often two of the major concerns from institutional investors as they consider buying into BTC. 

U.S. regulators yet to make a move

Meanwhile, in the United States, regulators continue their delay of proposed BTC ETFs along with other crypto related ETF inquiries.  

According to an applicant who filed for a BTC ETF this past year, the decision for approval is likely to still be years away. Comments made by applications seem to imply that SEC Chair Gary Gensler is not a friendly figure in their pursuits. 

Gensler recently made comments for a tighter grip over crypto industry on goings. 

BTC ETFs aren’t the only potential ETFs on the SEC’s desk. This year Goldman Sachs submitted an application for a DeFi ETF, which coincides with a boom in DeFi development. In addition, major investment firms are keeping an eye on the SEC as it toys with future financial options. 

Grayscale Investment LLC looks towards an ETF-filled future, as it continues to build a team to back their cryptocurrency ETF. Despite no movement from the SEC, the industry banks on the development. With the news out of France, perhaps it’s the push  U.S. regulators need to finalize their decisions. 

The post EU Regulators Approve BTC ETF by French Fund appeared first on BeInCrypto.


All content in this article is for informational purposes only and in no way serves as investment advice. Investing in cryptocurrencies, commodities and stocks is very risky and can lead to capital losses.

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