During this interview, Cyril Sabbagh, designer of our Bitcoin thematic ETF, discussed the following topics:
1- How is Bitcoin less volatile than the market?
2- Is this translated by an evolution of Bitcoin?
3- Will the new accounting rule encourage companies to buy Bitcoin?
4- Has your ETF evolved with investors during its first year?
5- Does your ETF continue to track the price of Bitcoin?
6- Two companies from this ETF: Microstrategy and Canal.
He talked about the Bitcoin volatility in comparison to the S&P500 and the Nasdaq, where Bitcoin has experienced a lower volatility over the past 30 days. From a purely analytical perspective, he added that Bitcoin volatility is currently at historically low levels.
In addition to that, he mentioned that when we reach a low point we will not stay there. What is also very interesting is that we are seeing the result of decorrelation with traditional markets. And from an allocation point of view, it is often said that Bitcoin is a diversification asset.
According to Cyril, the new accounting rule is going in the right direction: considering bitcoin as a traditional asset. There is indeed a strong tax incentive: it is very good for the ecosystem, for the increasingly strong adoption of crypto in general and bitcoin in particular.
He shed the light on the evolution of mentalities since the launch of this ETF a year ago where there are 2 types of actors: wealth management professionals and insurers since a wealth management adviser invests his client’s money in life insurance.
There is a very strong correlation between our ETF and Bitcoin because the last 6 months show a completely identical performance. As it was mentioned before, during the 2 summer months, our ETF outperformed Bitcoin by 40% and then underperformed by 10%. So there are back and forth and it’s not a straight line, but we have an allocation on the crypto ecosystem with a very strong correlation with Bitcoin.
Talking about Microstrategy and Canal, Cyril gave a brief description of the two companies. The first has a business model specialized in business intelligence and holds the most bitcoins in the world: 130,000 bitcoins worth almost 2.5 billion dollars, outperforming most companies in this ecosystem. The second is a blockchain service company providing supercomputer solutions and the inventor of ASIC mining machines.
Cyril also mentioned that Melanion Capital is interested in NFT markets.
Attention: Past performance does not guarantee future performance.