In a move that has surprised many investors, French asset management firm TOBAM announced on Wednesday that has launched Europe’s first ever Bitcoin mutual fund.
Institutional Investors and Bitcoin
Over the past several months, Bitcoin has received a lot of attention from major news stations and institutional investors. Some investors have been hesitating to directly invest in the decentralized cryptocurrency due largely to the lack of proper regulations and security measures by authorities. There have been previous attempts to establish a Bitcoin ETF, but they all have been rejected by US regulators.
The famous Winklevoss twins, founders of the Gemini cryptocurrency exchange, have tried several times in the past to launch their own Bitcoin ETF to no avail. A few weeks ago the CME Group, one of the biggest derivatives marketplace in the world, announced that they will launch Bitcoin futures in the fourth quarter of 2017. Analysts believe that more and more institutional investors will invest in the current cryptocurrency craze.
A Bitcoin Mutual Fund
On 22 November, TOBAM, a French asset management company, announced via a public statement on their website that it had launched Europe’s first ever Bitcoin mutual fund. According to the report, the TOBAM Bitcoin fund will allow qualified investors to enter the cryptocurrency market quickly and effortlessly. The president of TOBAM, Yves Choueifaty, states following in the report:
Research is the founding pillar of TOBAM, and we have conducted research from a technical, financial, economic, and regulatory point of view on Bitcoin for a year prior to launching this fund. This first move in the world of cryptocurrencies showcases our dedication to remaining ahead of the curve and to provide our clients with innovative products in the context of efficient (i.e. unpredictable) markets.
Bitcoin being a highly diversifying asset, this launch is also an expression of our commitment to diversification in all its forms. Once again TOBAM is ahead of the curve and, in order to remain so, we will continue to reinvest a significant part of our growth into research and innovation for the best interest of our clients
The Head of Business Development at TOBAM, Christophe Roehri, also added following:
Direct investment in Bitcoin can be operationally challenging, from dealing with the choice of the platform, to maintaining the proper security measures in terms of custody and to managing the changes made to the protocol – hard forks. Our goal is to take control of these operational challenges in order to facilitate access for qualified investors willing to gain exposure to Bitcoin. All of that under the format of a fund
The TOBAM Bitcoin fund is beginning to sound very promising for institutional investors and people that are hesitating to invest in the digital currency. It is a definite sign that the US market should quickly move to accept and regulate financial Bitcoin instruments if they want to be the leading force in the global cryptocurrency market.
What are your thoughts on TOBAM’s Bitcoin fund? Do you think that more European investors will invest in Bitcoin and other cryptocurrencies through the new fund? Let us know in the comments below!
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