Bitcoin Mutual Fund Launches in Europe

By Josiah Wilmoth

French asset management firm Tobam has launched Europe’s first bitcoin mutual fund.

Bitcoin Mutual Fund Launches in Europe

The unregulated Tobam Bitcoin Fund, announced by the Paris-based firm on Wednesday, will provide institutional investors with exposure to the price movements of bitcoin without the custodial restrictions and risks of holding the asset directly.

According to the Financial Times, the fund is classified as an alternative investment fund, so it will not be traded on public exchanges. However, it has received approval from French regulatory agency Autorité des Marchés Financiers and is available to eligible investors worldwide. PwC will audit the fund, and asset management service Caceis will serve as its custodian.

The fund is somewhat similar to Grayscale’s Bitcoin Investment Trust (OTC: GBTC), a publicly-quoted product that invests exclusively in bitcoin. On Wednesday, GBTC shares were trading at $995, representing a roughly 30 percent premium over the value of the underlying assets.

Similarly, the Tobam fund will have daily liquidity based on market closing prices.

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