Even since Bitcoin has begun witnessing mainstream attention, the regulators from around the World have been in full swing to keep a keen eye on the developments in the digital currency.
In March 2017, the SEC rejected requests to set up Bitcoin ETFs (Exchange Traded Funds) in the US proposed by investors Cameron and Tyler Winklevoss. However, in recent times CME Group has successfully announced setting up of bitcoin-linked derivatives by end of the year, which has been a lot of media coverage and attention.
Now, a French asset manager Tobam with AUM (assets under management) over US$9 billion is set to introduce the World’s first bitcoin-linked mutual fund. The mutual fund’s launch has been approved by the French financial authority AMF (Autorité des Marchés Financiers), audited by global audit-firm PwC and custody of bitcoins (linked to the fund) held by asset-servicing group Caceis.
The company’s top brass believes that the institutional investors’ interest in the cryptocurrency is rising, however, bitcoin’s unregulated nature makes it difficult for many institutions to invest in the cryptocurrency. The company says that the institutional investors are always looking out for innovative products covering somewhat unpredictable markets, much like Bitcoin.
The institutional involvement in Bitcoin and other digital currencies is often hindered by operational challenges, including choice of the platform and security measures in terms of custody of the digital currency. Therefore, the fund enables easy access to institutional investors by taking charge of those operational challenges.
The company expects that the fund could grow to a size of over US$400 million over the next few years.
It is yet to be seen if the development strikes interest in the asset management industry. If the rival asset managers in the European countries and the US take note and propose similar products, the industry is poised for a transformation in the coming months.