The launch of a Bitcoin ETF in the European Union has been approved by a French asset manager

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Melanion Capital, a French asset manager, has received regulatory authorization to create an exchange-traded fund (ETF) tracking the price of bitcoin (BTC, +1.13 percent) for European Union clients (EU). According to an emailed statement Wednesday, the Paris-based firm gained authorization from French regulators to start a fund that will monitor a basket of up to 30 stocks with a 90 percent connection to the price of bitcoin.

The Melanion BTC Equities Universe Ucits ETF is judged to meet EU requirements for “undertakings for the collective investment in transferable securities” (UCITS), which means it will be open to investors across EU, a first for a bitcoin-correlated fund in the EU.

“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,” Melanion said. The fund will invest in stocks such as mining companies Argo Block chain, Riot Blockchain, and Hive Blockchain, as well as cryptocurrency investment business Arcane Crypto. Bita, a German fintech company that supplies software for the computation of financial indexes and quantitative investment methods, will decide the fund’s allocation.

The fund will be listed on Euronext in Paris for a 0.75 percent charge.