Read The Ultimate Guide towards Bitcoin ETFs.

News & Updates

A Deep Dive into ETFs, Thematic ETFs, and Bitcoin Equities UCITS ETF

By

|

Published

What are ETFs? What about Thematic ETFs? If you are looking for an investment opportunity, the first step consists of getting to know the ETF landscape, from general ETFs to Thematic ETFs, and even Bitcoin Equities UCITS ETF, which mixes the traditional finance framework to the innovation of Bitcoin and cryptos. When it comes to investing, the possibilities are endless, so let’s start with the basics, and by the time you reach the end of this article, you will have a 360 view on the topic.

First things first, what are ETFs?

ETFs are usually regulated, and the regulations depend on the regions. In Europe, for example, ETFs are regulated according to the European regulatory framework of the UCITS IV Directive, which makes them subject to a wide variety of laws and regulations.

Practically speaking, ETFs function like mutual funds, as they both consist of a mix of assets, offering investors a wide variety of global and niche markets. Although, unlike mutual funds, that are usually aimed at collective investments, ETFs are designed for individual investors like you, which makes them accessible to everyone! There are also other key differences between the two, one of which being that ETFs can be traded intraday, which allows significant flexibility, which therefore makes them interesting to investors in comparison to mutual funds that can only be purchased at the end of each trading day, or in a weekly basis for some of them.

It is safe to say that ETFs have been established as a successful financial innovation, and have changed the way we look at investments today, as they grant a bundle of assets, which can lower your risks all the while diversifying your portfolio.

Now that you understand the perks of ETFs, what about Thematic ETFs?

Thematic ETFs allow you to dip your toes in the endless pool of theme-based possibilities, meaning they aim to identify long-term transformational trends. While they offer the same perks as ETFs, Thematic ETFs put at disposition additional benefits that particularly interest investors.

Thematic ETFs cover many diverse topics, from climate change to technological innovation, and everything in between. Practically speaking, by investing in Thematic ETFs, you can get an exposure to a specific theme emerging from trends and megatrends, instead of focusing on specific companies and sectors.

Other than giving access to promising market trends, Thematic ETFs are also interesting because they allow an additional source of diversification, but also allow you to personalize your portfolio based on your own beliefs and values by focusing on a specific theme that you believe in.

One of the main themes of interest among investors in the previous years is cryptocurrencies, Bitcoin in particular. This is where the Melanion’s Bitcoin Equities UCITS ETF comes in place.

If you are interested in the Bitcoin Thematic, and want to get an exposure to the companies that operates in the Bitcoin and Blockchain ecosystem, the Melanion Bitcoin Equities UCITS ETF could be of interest to you, as it allows you to invest in a UCITS compliant fund, while getting an indirect exposure to Bitcoin.

In 2021, Melanion Capital launched the first Bitcoin Equities UCITS ETF to allow investors to tap into the Bitcoin ecosystem. The Bitcoin Equities UCITS ETF tracks an index designed to follow a unique methodology, to build a basket of maximum 30 stocks in sectors such as cryptocurrency mining and blockchain technology. The Melanion Bitcoin Equities Thematic ETF is not just another crypto thematic ETF. Indeed, the ETF follows an innovative “smart-beta” index that select and weights the stocks according to their historical exposure to the Bitcoin price.

About Melanion’s Bitcoin Exposure Index: 

The Melanion Bitcoin Exposure Index was built to ensure diversification, as it complies with:

  • diversification ratios, as the allocation of the index is diversified in a wide range of stocks and not concentrated among few names
  • representativeness, as the index constituents are representatives of the Bitcoin and crypto ecosystem companies among different subsectors such as crypto mining companies, blockchain companies, companies that have crypto in their balance sheet etc.
  • independence, as Melanion Capital, which is the owner of the index methodology, is independent from the index calculator Bita, a German fintech;
  • and transparency, as the index has a clear and systematic methodology to explain its objective and the market segment it aims to represent; and all the information about the index’s components, weights and methodology are available online for anyone to consult (feel free to check them out!).

About the ETF: 

The Melanion Bitcoin Equities UCITS ETF combines the innovation of the smart-beta index and the regulatory framework brought by the traditional finance.

The assets of the Fund are held by its custodian: Société Générale Security Services. In case of insolvency of the Manager, the assets of the Fund held by the Custodian will not be affected. The Custodian is required by law and The Custodian is required by law and regulation to separate its own assets from the assets of the Fund.

Investing in an ETF also brings convenience. Indeed, buying a share of the ETF it is easy and as simple as buying any stock, and no crypto wallets or offshore accounts are needed to make an investment. It is also accessible anytime, anywhere, as it is available across major European countries, and through all major banks and retail platforms. It is also eligible for tax-efficient wrappers like life insurance and retirement plans. And of course, as previously explained, it is a UCITS compliant fund, just like the name implies.

If you believe in Bitcoin, and the companies that operate in the Crypto sphere and are looking for a solution with proper regulations, learn more about Melanion Bitcoin Equities UCITS ETF by downloading Towards Bitcoin ETFs: The Ultimate Guide where you will find detailed explanations on everything you need to know about Melanion Capital’s solution, its benefits, risks and functioning.

For those who would rather discuss their investment options in person rather than reading about it, Melanion Capital’s experts are always at your disposal for a free consultation in order to guide you through the process and provide you with the necessary information and tools so you can make your decision.

Bitcoin Academy app

Bitcoin is here to stay.

Enjoy the learning by reading bite-sized lessons followed by review questions. No prior experience is needed.