BFM Crypto, leClub: Why Bitcoin is not benefiting from the rise of traditional markets ? 01-12

Cyril Sabbagh, Managing Director at Melanion Capital talks more about Melanion’s Bitcoin thematic UCITS ETF during an interview on BFM Crypto with Guillaume SOMMERER, co-editor in chief at BFM Business, and Valentin Demé, journalist at Cryptoast.

During this interview, Cyril Sabbagh, designer of our Bitcoin thematic ETF, discussed the following topics:

1-    Bitcoin in comparison with traditional markets and the diversifying utility of Bitcoin

2-    Presented two components of our ETF: Northern Data and Block Inc.

3-    FTX regulation and its collapse

4-    Risk comparison between FTX and our Bitcoin thematic ETF

Cyril explained how we had a very negative correlation over the past month between Bitcoin and traditional equity markets: When Bitcoin went down the equity markets went up. On the other hand, at the start of the Russia-Ukraine crisis, it was the opposite: the cryptos had risen and the equity markets had fallen. So, this role of diversification appears today less than what we had seen before, but in any case, diversification is present.

Talking about Northern Data and Block Inc, Cyril described the role of both companies: The first offers very powerful computer machines with high computing capacity, used by Bitcoin miners to validate transactions on the blockchain and it offers hosting services in data centers it owns as well. The second is known by its former name Square, specialized in payment solutions allowing small and medium businesses to have payment terminals on tablets in any case to simplify the entire payment process for these businesses. They have projects to bring Bitcoin into everyday life.

At the end, Cyril shed the light on the high regulatory requirements in this ETF meaning that there is no same type of risk as FTX at all. The UCITS framework of this ETF is the strongest and most protective framework today for a fund in Europe, only investing in regulated products, having a diversification ratio, perfect transparency and risk management with very precise rules, and the funds must be deposited with an independent depositary bank where the management company cannot at all use client funds.

Attention: Past performance does not guarantee future performance.


This article and the strategy it outlines, are provided for informational purposes only. The content within is not intended to be financial advice and should not be taken as such. The historical performance of Bitcoin ETFs is no guarantee of future results.

Investing in Bitcoin ETFs involves a high degree of risk, including the loss of all your investment, and may not be suitable for all investors. Market conditions can vary significantly, and the volatility of cryptocurrency markets can lead to rapid and substantial losses.

Readers are advised to conduct their own due diligence and consult with a professional financial advisor before making any investment decisions. The views and opinions expressed herein are those of the author and do not necessarily reflect the official policy or position of any financial institution or investment service.

Past performance is not indicative of future results. The investment strategy and themes discussed herein may be unsuitable for investors depending on their specific investment objectives and financial situation.

The author and publisher of this strategy are not responsible for any financial losses or gains you may experience. Investing in the markets is speculative; it should only be done with risk capital that if lost will not significantly affect your lifestyle.

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