Bitcoin ETF: French-based Asset Management Company Launches ETF
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According to recent reports by the Financial Times, a French asset management firm (Melanion Capital) is set to launch an EU-regulated Bitcoin ETF. Dubbed the Melanion ETF, this Bitcoin (BTC) derivative would become one of the first of its kind in the European market.
The proposed ETF will track about 30 stocks in the cryptocurrency mining and blockchain industry and, according to Melanion, correlated with the BTC price by 90%.
The launch of this product indicates the progressive and adoptive outlook on cryptocurrency by financial regulators and institutional investors in the region.
According to Winston Penhall, a funds lawyer at Keystone Law in London, the new BTC ETF will operate under UCITS (Undertakings for Collective Investment in Transferable Securities Directive).
EU-based investors regard UCITS-regulated funds as the standard investment option in the EU. This class of investment attracts a significant amount of investors and offers a high level of protection.
Meanwhile, Melanion Capital’s ETF is not the first BTC-tracking investment product. Wisdom Bitcoin ETP is a popular financial product tracking BTC without being a security asset.
According to the report, the Melanion BTC Equities Universe Ucits ETF will get listed on Euronext in Paris and would charge a 0.75% premium.
Key Bitcoin Levels to Watch — August 5
After plummeting to the $37.5k support yesterday, the benchmark cryptocurrency posted a $2.5k spike to the $40k psychological resistance, where the hourly 200 SMA rejected the price.
BTC now approaches the $37.5k support, once again, following a fall below the critical $38.5k support an hour ago. That said, we expect a slight bearish continuation in the near term to the $37.5k – $37k axis, where a rebound should emanate.
Nonetheless, we expect a market-moving development from Ethereum later today, which could hold significant sway on the next directional bias for BTC.
Meanwhile, our resistance levels are at $39,500, $40,500, and $41,000, and our key support levels are at $37,500, $37,000, and $36,000.
Total Market Capitalization: $1.58 trillion
Bitcoin Market Capitalization: $715.2 billion
Bitcoin Dominance: 45.2%
Market Rank: #1
