Melanion Capital, a large alternative investment management company, has announced the launch of its Menanion BTC Equities Universe UCITS ETF on October 22nd on the Euronext Paris exchange as one more bitcoin-based ETF enters into the market.
The SEC finally gave the go-ahead for the launch of Bitcoin ETFs in the US a couple of weeks, after months of delays and speculation, and this seems to have brought in renewed interest into the ETF space as all the ETFs that have been launched since then have received a lot of traction from the investors. Bitcoin ETFs are not only being launched in the US but other parts of the world as well and they continue to receive some good support but it remains whether this would last for the long term as that would be key for the crypto ecosystem.
“Being able to invest in the Bitcoin transition story in a harmonized framework for investment funds that can be sold to retail investors throughout the EU, is the next natural step in this becoming a more mainstream asset class and thematic, and we are naturally delighted to be the first firm to make this dream a reality for the European investment community,” adds Jad Comair, CEO of Melanion Capital.
Amidst a large number of bitcoin-based ETFs that are being launched, there are also calls to temper the exposure to bitcoin at least in the long term. Bitcoin has been the flag bearer for the crypto industry for a long but it seems as though the time has come for the dominance of bitcoin to be reduced in the overall market and the focus needs to shift on to other tokens that are backed by some strong fundamentals like Ethereum and others. This would help with maturing of the market as investors would then become aware of various projects in the crypto industry and would then diversify their investments which would, in turn, help the other projects as well and reduce the price pressure on bitcoin.
This new ETF has exposure to companies that work with Bitcoin in one way or the other and hence it would be indirectly related to how bitcoin and its prices are doing. There are no reports as yet of how the ETF is doing and what kind of reception it has received from the investors but we will have to wait for a few months to see how well the ETFs are doing and that would give an indication for the long term.