The crypto market is on a roller coaster with prices being quite volatile in recent years. However, developments are increasing consistently. Napoleon AM, a Paris-based asset management firm, announced that it is launching a regulated Bitcoin fund known as the Napoleon Bitcoin Fund.
The company published in a press release that this fund was created on November 8. It is registered as a specialized professional fund under the French law. This company alleges that its product is one of the first regulated vehicles that offer exposure to Bitcoin’s price movements.
The product, with its daily liquidity, strives to offer portfolio diversification to institutional and professional investors. Notably, the fund imitates the performance of futures that are listed on the Chicago Mercantile Exchange in cash settlement.
There is optimism for Bitcoin’s potential
Napoleon AM noted that cash settlements were selected to keep away from the hassle of valuing and storing Bitcoin. The auditor is Price waters Coopers (PwC) while the custodian is Financière d’Uzès.
According to the release, the asset manager decided to create the product after noting the potential of blockchain and Bitcoin technology:
“Convinced of the major transformation challenge carried by the blockchain for the entire industry, Napoleon AM got quickly interested in the financial potential of what intrinsically emanates from public blockchains, digital assets.”
The firm is convinced that Bitcoin is quite unique since it is highly volatile. It is also abnormally biased in performance in terms of positive returns compared to the low correlation of traditional assets. All these features as the company notes make BTC highly suitable to diversify portfolios to optimize risk/return ratios.
Many funds are increasingly competing aiming to facilitate institutional investors interested in Bitcoin. The publicly-traded Bitcoin fund Grayscale Bitcoin Trust filed Form 10 trying to better suit the needs of accredited investors. They filed with the United States Securities and Exchange Commission aiming to become the first cryptocurrency fund to report to the regulator.