For the first time, French institutional investors can invest in bitcoin in a regulated manner. Napoleon Asset Management has received permission from the French Financial Markets Authority, the AMF. The unique thing about this fund is that it consists entirely of bitcoin. It is meant for the large wallet, the minimum deposit is 100,000 euros, French Les Echos reports.
Only for institutional investors
Napoleon Asset Management now focus on institutional investors with the Bitcoin Fund. Institutional investors are funds and companies that invest commercially in financial products. Think of pension funds and insurance companies.
The investment fund only accepts institutional investors from France, so foreign parties are not allowed to participate.
Fully regulated by the AMF
French legislation was amended in the spring of 2019. The provisions in the Monetary and Financial Code (Monétaire et financier code) have been extended, and this expansion means that Napoleon Asset Management can now offer a bitcoin fund.
Napoleon Bitcoin Fund is not the first French company to offer this. At the end of 2017, Tobam offered bitcoin futures in France. The same kind of bitcoin futures that CME Group also offers in America. But Tobam was not regulated by the AMF.
The Napoleon Bitcoin Fund is therefore not the first, but the first fully regulated party to offer this service to institutional investors. And that is already a big step in France. It remains to be seen how much demand there is for such a service, but it is certainly an interesting development.
America is further
When it comes to institutional investors and bitcoin, America is currently further. There, for example, you can already trade in bitcoin futures at CME Group. Bitcoin futures platform Bakkt is also popular. Bakkt offers bitcoin futures contracts that are handled in bitcoin.
Since Monday, December 9, Bakkt is the first party to offer monthly bitcoin options. Bitcoin options are almost the same as bitcoin futures. The difference is that investors have no obligation to sell the contract at the end of the contract. Bitcoin options are therefore a bit more optional.
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