French Asset Manager Launches World's First Bitcoin Mutual Fund

Since bitcoin first entered mainstream consciousness in 2013, regulators have been wary of authorizing the creation of bitcoin-linked financial products that would create a patina of legitimacy for a product that was all-too-recently associated with dark-web bazaars like the Silk Road. So far, the only bitcoin-linked financial product is the Nasdaq Stockholm-traded ETN that JP Morgan Securities famously purchased – purportedly for its clients’ accounts - after Jamie Dimon called the digital currency a “fraud” and said he would fire any JPM traders caught trading it.

Back in March, the SEC rejected not one, but two proposed bitcoin ETFs. Recently, CME Group announced it would launch bitcoin-linked derivatives by the end of the year. Their prices will be set using a daily reference rate designed by the exchange that some critics have pointed out could strengthen the case for the SEC to approve a bitcoin-linked ETF in the US.

Well, one French asset manager just created a newfound sense of urgency for its rivals in the US by introducing the first bitcoin-linked mutual fund.

Announced today, Tobam's alternative investment fund perhaps represents the latest bid to attract institutional investors to cryptocurrencies (though, as in the case with similar financial instruments, investors wouldn't be holding bitcoin directly).

 

…the mutual fund's launch follows approval from the Autorité des Marchés Financiers, one of the country's top financial regulators. Per the report, PwC will perform auditing services while Caceis, the asset servicing banking group of France-based Crédit Agricole, will hold custody of the bitcoins tied to the 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," Yves Choueifaty, Tobam's president, said in a statement.

Choueifaty said he expects the fund to swell to an AUM of $400 million over the next several years.

Investors are already expressed interest, he said.

"We found some investors to launch the fund and we have had a lot of interest from an intellectual point of view," he told the publication.

As CoinDesk pointed out, the idea that institutional investors want to gain access to bitcoin is unsurprising, given recent reports from the traditional hedge fund world. Whether products like Tobam's will further stoke interest remains to be seen.

The announcement coincides with another all-time high for the digital currency, which has climbed more than 700% this year despite a crackdown in China, a hard fork, the collapse of several high-profile ICOs, declarations by Dimon and others that bitcoin is a bubble, a hoax or is outright dangerous (“It’s going to get somebody killed”)…the list goes on.

However, bitcoin has benefited in part from the fact that there’s no easy way for retail traders to bet against it. That will soon change, now that a Swiss company has introduced futures contracts that will make it easier for retail investors to short bitcoin.

Of course, that would mean the investors buying into this mutual fund would be getting in right at the market top…
 

Comments

MonetaryApostate QueeroHedge Fri, 11/24/2017 - 06:58 Permalink

CryptoCurrencies were created with multiple goals in mind, drain all countries & rich people of money, see the foxes opened the digital pens to get the chickens to come in, with low or no transaction fees, " safe" overseas transactions, & tracking to ensure thieves aren't anomynous, but that's just scratching the surface.Of course they are just another investment casino, like every other illusionary financial product, just like money is. (See link below)https://plus.google.com/+GaleInnes/posts/CdLuBK4GcMy Once money goes in, it'll be tracked, charged fees, ensure taxes cannot be avoided, will permit lawyers to get legal judgements against you collected, force payment of student debt, will permit corps to make you pay your bills, & least of all cryptos are subject to price evaluation manipulation, speculation, & of course confinscation.It's not regulated yet, but you'd be an idiot to think such a magnificent digital product isn't controlled by TPTB & won't be used by them to transition the serfs to cashless societies, because ultimately it's easier to print, control, regulate, & steal digital fiat than cash.The Sooners of Cryptos are smiling bigger than a king looking at his hordes of treasure, because at $0.25 a crypto, they bought in with millions of fake paper!  Now as more capital flows towards their hollywood casino, the Boomers will be taking hair cuts regularly.The strength of our enemies is, they rely on the ignorant masses to control the herds & cause change, but you can wake them up, or we will all be forced into this digital prison idiots are paying to build!The real question crypto buyers need to answer is, who controls your money if you buy a crypto?  The answer to that is NOT YOU! More security means the loss of freedom & control!Please pardon spelling & grammar, am on phone. =/

In reply to by QueeroHedge

Exponere Mendaces MonetaryApostate Fri, 11/24/2017 - 07:37 Permalink

Your assumption is a large one, and is easily proven false with the following statement:"What happens when things get denominated in cryptocurrency?"The answer is obvious - the bankers lose control.You assume that the route will always be Crypto --> Exchange --> Bank AccountWhen it will most certainly evolve to Crypto --> Crypto-priced Assets/ProductsExchanges will be obsolete, and the legacy banking system with it.If you don't understand this, then you don't understand what Crypto can do. 

In reply to by MonetaryApostate

cherry picker Fri, 11/24/2017 - 04:58 Permalink

Stock exchanges should be outlawed.If a person wants to buy and sell stock, they should deal directly with the corporation issuing them.May bring back reality to this whole house of mirrors.

Mustafa Kemal hmmmstrange Fri, 11/24/2017 - 09:48 Permalink

"Insane that it is coming up to 1btc = monster box of silver.Indeed, and I suspect more surprises like that coming.  I remember when Kaiser predicted 5000$ BTC and most thought he was a nut (well, he is a nut, but you know what I mean). Now, the total BTC=BCH price is near $10K. So, is $50K per BTC impossible? I think not. We may see it soon. May not even get to see McAfee eat his dick on tv

In reply to by hmmmstrange

gunzeon Fri, 11/24/2017 - 06:08 Permalink

A friend of mine told me;"My Dad wants to talk to you about bitcoins, he wants to invest in them, can he ring you tonight ?"Sure, top guy, ~75 y.o., no problem. He rang and we talked ... current price was ~$3kI asked him, and you want the stress of checking the price every 10 minutes ? Don't you want the stress free life ?I said that lotsa people make money from investing in bitcoin, they make money selling them to johnny come latelies.Investment advice is not my forte but in this case he took it ... for better or worse. 

gunzeon Yellow_Snow Fri, 11/24/2017 - 06:47 Permalink

well, had another mate, bought in at $500, bag held for about 3 years, said a few months ago when it was $1500 ... i wanna sell ... i said well really, it's heading to $2500, personally i'm not, just my opinion, i'm waiting ... he says "well i know this stuff, it's not going any higher" ... ok he sold even though he did not need the doh, trebled his stake ... was smiling for about a week but no more.Personally, i think his wife had him by the balls.Moral ? don't get investment advice from your wife ! 

In reply to by Yellow_Snow

NoCamelCase Fri, 11/24/2017 - 06:20 Permalink

"However, bitcoin has benefited in part from the fact that there’s no easy way for retail traders to bet against it." stop perpetuating this bullshit, you can short with many exchanges and trading platforms - i'll mention just a few: kraken, bitmex, bitfinex, plus500.ch

Davidduke2000 Fri, 11/24/2017 - 06:27 Permalink

Fraud is spreading world wide.People used to make money the old fashion way, they used to earn it , now since madoff , they steal it by fraud, after all he made off with $billions.

floosy Fri, 11/24/2017 - 07:25 Permalink

Now I am no BTC pumper (infact I think it has other motives but, hey)BUT the best thing about crypto currencies is this.  I have a desktop PC that I work on all day and another sitting doing trivial stuff but on 24/7.Both of those are ex-gaming rigs with dual GTX1080s in SLI.  So I have them running a pool miner mining alt coins but getting paid in BTC, in the back ground, 24/7.So far this year they have made over $2000 each after electricisty costs and since they have to be on anyway the cost is neglible in extra electricity.  Earn BTC while you work and cash it out to other more useful assets.Woud I "invest" in it? Would I fuck. But as as source of free PM's for doing something anyway it's all good.

Golden Phoenix Fri, 11/24/2017 - 12:50 Permalink

'Of course, that would mean the investors buying into this mutual fund would be getting in right at the market top…'Bitcoin has always been at the market top. It's called 'going up', stupid.