France Approved the First ETF fund to invest in cryptocurrencies that meet EU Standards.

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Paris-based alternative investment manager Melanion Capital has received legal approval for an ETF that seeks to track the price of Bitcoin and which meets the European Union’s basic standards.

The ETF meets the UCITS standard, an important benchmark for institutional investors, according to a company statement. The fund will invest in a “bouquet” of shares intended to be up to 90% correlated with the price of Bitcoin.

Cyril Sabbagh, head of ETF at Melanion Capital, argued that the new product is a better option than a direct investment in Bitcoin because it faces the risk of losing or hijacking cryptocurrencies, which is also a key concern for institutions.

A number of funds linked to cryptocurrencies have been set up this year. In the US, the relevant authorities have not yet approved an ETF that invests directly in digital currencies, although more than a dozen companies are trying to launch one. About 10 have applied for approval by the end of 2020.

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