Paris-based Napoleon AM Strongly Connected Bitcoin Fund to CME Cash-Settled Futures
Cryptocurrency markets are on a roller coaster at a fairly volatile price in recent years. However, development is growing consistently. Napoleon AM, a Paris-based asset management company, has launched a new cryptocurrency fund called “Napoleon Bitcoin Fund” that attached to “the Cash-Settled Bitcoin futures” by Chicago Mercantile Group (CME) provided.
The company announced in a press release that the fund was created on November 8 and is a professional fund professional under French law. The company claims that their product is one of the first regulated vehicles exposed to Bitcoin price fluctuations.
The product – with daily liquidity – aims to provide portfolio diversification for institutional and professional investors. This fund reproduces the performance of futures listed on the Chicago Mercantile Exchange in cash payments.
As reported by French publication Les Echos, this is a fully regulated investment fund on cryptocurrencies. Last week since December 6, cryptocurrency funds were available to trade for French-based professional investors. Note that the fund is local only in France and cannot be traded across borders.
The Napoleon Bitcoin Fund, with a minimum ticket size of 100,000 euros, is a specific target for institutional investors. Napoleon AM also explained the reason behind the launch of this new product. The asset management firm believes that Bitcoin is ideal for diversifying as well as optimizing risk-return rates.
This is the first bitcoin fund issued by Napoleon AM, asset management wing of the French financial services company Napoleon Group. Napoleon AM became a licensed alternative investment fund manager in May 2019, the French financial regulatory website shows.
And it is also one of the first French funds to use the Bitcoin future for cash payments in CME. The prospectus seeks to expose itself to bitcoin price movements without holding any actual bitcoin, according to the prospectus.
Finally, it trades the CME bitcoin futures contract, the United States only regulating cash-settled bitcoin futures products (competitor CME Bakkt launched cash-settled bitcoin futures products in Singapore on Monday).
Napoleon could conceivably understand Bakkt’s new product, prospectus, and investor leaflet to leave the possibility of including a similarly organized exchange listing future payments. Upcoming BTC.
Stéphane Ifrah, President Napoleon AM, said in a press release that the fund was the culmination of discussions with the French regulator.
It remains to be seen what a popular means of investment tied to the future of bitcoin will be for French investors.
Potential of Bitcoin
The company noted that cash settlements were chosen to avoid the hassle of storing and valuing Bitcoin. The supervisor is Financière d’Uzès, while the auditor is PwC.
The company believes that Bitcoin is exceptionally unique thanks to its high volatility, extraordinary performance bias, which benefits positive returns and low correlation with traditional assets. Those features make Bitcoin suitable for diversifying its portfolio to optimize the risk/return ratios.
Their partners have shown interest in regulated futures products, with CME recently reporting a 61% increase from the previous year in open contracts of bitcoin futures. Meanwhile, Grayscale Bitcoin Trust filed Form 10 with the U.S. Securities and Exchange Commission to become a crypto investment fund reporting to the regulator, per a Medium post on November 19.
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