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Specs

Melanion Bitcoin Equities UCITS ETF

Important Consideration

The Fund will invest in companies with significant activities in the Bitcoin theme. The attention of investors is drawn to the fact that no minimum correlation threshold has been pre-established between the price of these companies and the price of Bitcoin. On the other hand, the Fund’s methodology aims to select the securities with the highest sensitivity to Bitcoin. By investing in stocks exposed to Bitcoin, the Fund will not necessarily or mechanically follow the price of Bitcoin itself, whether it is rising or
falling.

Investment Objective

The objective of this Fund is to track as closely as possible the performance of the Melanion Bitcoin Exposure Index regardless of its trend, positive or negative.

The Index is an equity index administered by BITA, calculated by BITA and based on a model designed by Melanion Capital. The Index is made up of a maximum of 30 securities with market capitalizations greater than 100MUSD listed on European and American markets, companies that operate in the segments of “Crypto” asset management and trading, “Crypto” banking and services, “Crypto Mining” and Blockchain technology, or the companies that hold Cryptocurrency on their balance sheets.

For further information on the Fund please consult the prospectus of the Fund.

NAV

6.37

PERFORMANCE YTD

+68.97%

TOTAL AUM

2.94 m €

ISIN

FR0014002IH8

CURRENCY

EUR

ONGOING CHARGES

0.75%

As of 29 May 2023

Simple & Quick

No need for a special setup or account creation. You can buy the ETF through your current bank or broker, much like any other security.

Bitcoin Megatrend

You can tap into the potential of the Bitcoin megatrend, the original cryptocurrency that started the revolution in financial technology.

Regulated & Secured

A regulated, UCITS ETF, approved by the Autorite des Marches Financiers, with custody provided by Societe Generale Securities Services.

Eligble for Tax-Efficient plans

You can hold our fund in a life insurance or retirement plan and take advantage of lower taxes on potential investment earnings.

Historical Performance

Past performance is not a reliable indicator of current or future performance and should never be the sole basis for selecting a product or strategy.

Documentations

For index licensing requests: index@melanion.com

Prospectus

KID

Factsheet

Listings

STOCK EXCHANGE
LISTING DATE
ISIN
TICKER
BLOOMBERG TICKER
REUTERS IRC
LISTING CURRENCY

Top 10 Constituents

As of 15/03/2023

NAME
TICKER
COUNTRY
WEIGHT
SECTOR

Download the Latest Full Fund Holdings List.

The attention of investors is drawn to the fact that no minimum correlation threshold has been pre-established between the price of these companies and the price of Bitcoin. By investing in stocks exposed to Bitcoin, the Fund will not necessarily or mechanically follow the price of Bitcoin itself, whether it is rising or falling.

Geographical Breakdown

Sector Distribution

Risk Level

The level of risk of the fund mainly reflects the risk of the market in which the fund is invested and, as the case may be, the leveraging strategy or inverse performance of the index.

The capital initially invested does not benefit from any guarantee. The current level of risk does not indicate the future level of risk and may change over time. The lowest risk level is not equal to a risk-free investment.

FAQ

What are the management fees?

The MELANION BTC EQUITIES UNIVERSE UCITS ETF have ongoing charges of 0.75%. These fees cover all expenses billed directly to the Fund, except for transaction costs. Transaction costs include intermediary costs (broker’s fees, etc.) and the turnover commission, if any, that might be charged by the Depositary.

Who calculates and publishes the daily return of the index tracked by the ETF?

The daily price and return of the Melanion Bitcoin Exposure Index are calculated and published by BITA GmbH, a leading index provider, with a strong focus on technology and infrastructure for
indexation and systematic investing.

What are the criteria for the selection of the index constituents?

The composition of the index includes companies that satisfy the following criteria:

Companies listed at recognized North American and European exchanges, exhibiting the
highest correlation and revenue exposure to Bitcoin.
The companies that operate in segments of Crypto Asset Management and Trading,
Crypto Banking and Services, Crypto Mining (including Hardware), and Blockchain
Technology, or the companies that hold Cryptocurrency on their balance sheet as
investments or for preservation of value.
Minimum Average Daily Traded Value (ADTV) in the last month of USD 500,000
In the case when, at a rebalancing event, due to the liquidity filter, it is not possible to
maintain an eligible universe of more than 30 constituents, the liquidity threshold will
be reduced to a value of USD 100.000 to ensure the viability of the index.
Minimum Market Capitalization: USD 100 million.
Trades at a recognised exchange in North America and Europe with strict listing
requirements and policies.

How are the stocks constituting the ETF weighted?

The constituents follow a beta weighted methodology (a composite measure of the volatility of a
security (the share price) relative to a benchmark (the price of Bitcoin). For each constituent Beta coefficients are calculated as the covariance between the constituent weekly returns and the Bitcoin weekly returns divided by the variance of the Bitcoin weekly returns. Only constituents with positive betas are considered for index composition.

How often is the portfolio rebalanced and reconstituted?

Except for extraordinary adjustments, the Index is reconstituted and rebalanced quarterly at the Close of Business (COB) on the 3rd Friday of March, June, September and December after the market closes.
The exact composition and the rules for reviewing the composition of the Index are available on the website: https://www.bitadata.com

How are corporate actions treated?

Extraordinary events such as Merger, takeover bid, delisting or insolvency make the index adjustments necessary. The BITA Index Management Board (BIMB) may decide to substitute an index constituent with a candidate index constituent upon the occurrence of an extraordinary event as deemed by BIMB or according to the “BITA Corporate Actions Treatment Guide”. The successor index constituent shall be included in the index after the close of business day when an extraordinary event has been determined.

What happens if a component is listed on multiple exchanges?

If a company has more than one share class that qualifies for membership in the index on a stand- alone security basis, only the share class with the highest liquidity as measured by ADTV of the last month will be considered for composition.

How do you treat IPOs that might be eligible for inclusion?

IPOs are reviewed for addition at a regular reconstitution on the basis of the eligibility criteria, and availability of the sufficient data for beta-score calculation with respect to Bitcoin (minimum of 3 months).

What could be the reason behind the non-inclusion of a Company X in the ETF?

The reason why company X may not be included in the ETF is that it doesn’t meet the selection criteria when the ETF was last reconstituted. Should this company now meet the index selection criteria, for example if its liquidity, measured by the average daily volume of transactions, exceeds the minimum authorized threshold, it will become a candidate for inclusion at the next reconstitution date.

Can the composition of the ETF be dominated by one or two components?

To avoid undue concentration, at each rebalancing, each individual constituent should not represent more than 10% of the portfolio. This capping constraint is applied to the equity weights on each Determination Date through an iterative process, where any weights in excess of 10% are redistributed proportionally among the remaining securities pro-rated, repeated until none of the weights exceeds 10%. Moreover, as the performance tracking is done through a diversified basket of traditional assets (equities), it is eliminating the risks usually associated with Bitcoin, like loss, theft or hacking. By investing in equities replicating the Bitcoin performance, investors can achieve diversified asset allocation that was not available before!

What is the standard investor profile?

This Fund is intended for an investor seeking long-term capital appreciation. The units of this UCITS are not and will not be registered in the United States under the U.S. Securities Act of 1933 as amended ("Securities Act 1933") or permitted under any law of the United States. These units must not be offered, sold or transferred in the United States (including its territories and possessions) nor benefit, directly or indirectly, a US Person (within the meaning of Regulation S of the Securities Act of 1933).

Will it be possible to subscribe via my PEA?

Unfortunately, the ETF is not eligible for PEA because it includes (in part) non-European (US) equities.

What happens to the income generated (dividends) on the ETF?

Distributable sums will not be distributed to unitholders but will be reinvested., with the exception of those amounts which are subject to compulsory distribution by law.

What does the UCITS IV directive provide to investors?

The purpose of the European UCITS IV directive (”Undertakings for the Collective Investment in Transferable Securities”) is to favour the distribution of UCITS funds between European countries and improve the transparency and harmonisation of information provided to investors, notably by introducing the Key Investor Information Document (KIID). The KIID is a summary document harmonised across all European countries. It provides a clear, accessible summary of the key characteristics of a product.

What expertise does Melanion Capital have in the digital asset industry?

Melanion Capital has been able to attract a team of specialists involved in the digital assets and blockchain fields for several years. As an investment management company, Melanion Capital also has a wide range of expertise in alternative asset management. Thanks to this combination of skills, Melanion Capital has the ambition to become a reference in the crypto investment universe.

Who do I need to contact for more info?

Please email inquiries to etf@melanion.com