Melanion Capital, the Paris-based independent alternative investment management company, has just obtained the AMF approval for its first ETF which will track the performance of the Melanion Bitcoin Exposure Index. The index is the first of its kind due to its unique methodology based on beta weighting which bridges the gap between Equities and Bitcoin. The index is composed of companies with significant activities in the Bitcoin theme.
However, no minimum correlation threshold has been established and the index is not guaranteed to follow the price of Bitcoin itself, rising or falling. The index selects the securities with the highest historical sensitivity to Bitcoin. It tracks a beta-weighted equities basket exhibiting the highest correlation (with no minimum) and revenue exposure to Bitcoin.
By tracking this Index, the Melanion BTC Equities Universe UCITS ETF seeks to expose investors to the daily price movements of Bitcoin through a diversified wrapper that meets UCITS standards. While there have been many Bitcoin-backed Exchange Traded Products listed in Europe, most European regulators apply a look-through approach rendering them ineligible for most institutional investors, due to their investment restrictions.
“It is therefore a major step for asset managers, allocators and in general for all investors interested in the Bitcoin thematic, allowing them to have an effective tool to diversify their portfolio in a UCITS compliant format” said Jad Comair, President of Melanion Capital.
It is also a major step for France which once again proves its open-mindedness on cutting-edge subjects and its desire to be a pioneer vis-à-vis other countries in Europe but also in the world. The SEC for example has still not given its approval to the many Bitcoin ETF applications, some dating back as far as 2013.
“Over the past years, institutional investors gradually became aware of Bitcoin’s investment benefits, as a diversifying asset class” commented Cyril Sabbagh, Head of ETF at Melanion Capital. “Our ETF will not be another thematic equity ETF. Indeed, thanks to a smart beta construction, we came up with a solution that would deal with the UCITS limitations, without complexifying the portfolio construction, to give investors a real exposure to the theme.”
The Melanion BTC Equities Universe UCITS ETF will initially be listed on Euronext and have management fees of 0.75%.
For all inquiries, please contact: etf@melanion.com
Disclaimer
It is each investor’s responsibility to ascertain that it is authorised to subscribe, or invest into the product detailed in this press release. Prior to investing in the product, investors should seek independent financial, tax, accounting and legal advice. Melanion BTC Equities Universe UCITS ETF is a French open ended mutual investment funds approved by the French Autorité des Marchés Financiers.
Melanion Capital SAS recommends that investors read carefully the “risk factors” section of the Melanion BTC Equities Universe UCITS ETF prospectus and the “Risk and reward” section of the Key Investor Information Document (KIID).
The Melanion BTC Equities Universe UCITS ETF include a risk of capital loss. The redemption value may be less than the amount initially invested. In a worst-case scenario, investors could sustain the loss of their entire investment. There is no guarantee that the objective of Melanion BTC Equities Universe UCITS ETF will be met.
Melanion BTC Equities Universe UCITS ETF may not always be able to replicate exactly the performance of the Melanion Bitcoin Exposure Index.
The index and the trademarks used in this document are the intellectual property of index sponsors and/or its licensors. The index is used under license from an index administrator.
This press release together with the prospectus and/or more generally any information or documents with respect to or in connection with the Melanion BTC Equities Universe UCITS ETF detailed herein does not constitute an offer for sale or solicitation of an offer for sale in any jurisdiction (i) in which such offer or solicitation is not authorized, (ii) in which the person making such offer or solicitation is not qualified to do so, or (iii) to any person to whom it is unlawful to make such offer or solicitation.
In addition, the shares are not registered under the U.S Securities Act of 1933 and may not be directly or indirectly offered or sold in the United States (including its territories or possessions) or to or for the benefit of a U.S Person (being a “United State Person” within the meaning of Regulation S under the Securities Act of 1933 of the United States, as amended, and/or any person not included in the definition of “NonUnited States Person” within the meaning of Section 4.7 (a) (1) (iv) of the rules of the U.S. Commodity Futures Trading Commission.).
