What impact does Bitcoin EFT have? Meeting with the Managing Director of Melanion Capital


January 19, 2024 03:14 UTC+1
| 3 min read

Since the approval of the eleven Bitcoin ETF in cash by the American regulator, the SEC, French FinTechs are recording renewed interest in their crypto investment products.

The Bitcoin ETF, a long way of the cross


“+185% over one year!” Cyril Sabbagh is very proud to display the performance of the ETF on which he has been working since October 2021. It is not that of BlackRock, nor that of Fidelity, nor one of the eleven Exchange Traded Funds validated by the United States financial markets authority, the Securities and Exchange Commission, on January 10. The financial instrument he is talking about is, however, the very first UCITS (undertaking for collective investment in transferable securities) backed by equity themes close to the leader in cryptocurrencies, Bitcoin.

Made up of a basket of thirty listed companies, whose activity is directly linked to BTC, in the mining, finance or crypto holding sectors (Coinbase, MicroStrategy, etc.), the Bitcoin Equities ETF of Melanion Capital is regulated by the AMF and has the UCITS label, “the highest level of regulation that exists today in Europe”, explains the Managing Director. The ETF is eligible for traditional savings envelopes, such as life insurance or the retirement savings plan (PER). To date, the Bitcoin equity ETF has 500,000 shares subscribed, compared to 35,000 shares at its launch.

It was not legally possible to create a Bitcoin ETF backed only by BTC in France, because to be included in a Stock savings plan (PEA), products must be “regulated and diversified”.

“This gives us even more arguments”


The reaction of insurers and institutional players in traditional finance has changed radically over the last six months, notes Cyril Sabbagh. At the start of 2023, they did not want to be exposed to Bitcoin, because it affected cryptos. But with the decision to BlackRock to register your ETF, things have changed. These institutional actors have adopted a position of followers. With the SEC’s approval, I have a much stronger case now.”

For what ?

“Institutional investors have been sensitive to the performance of Bitcoin in 2023 (+150%) but above all, it is an asset which has appreciated in a manner uncorrelated with other assets”.

The first collection figures, from the spot Bitcoin ETF validated by the SEC, confirm this trend.

“We see a net inflow of $2.8 billion, of which BlackRock and Fidelity take the lion’s share, in just four days of trading. In the United States, there is $48 trillion in private money, 70% of which is held by people over 60 years old. Today, these American savers will have the ability to invest easily.”

Place for the Ethereum spot ETF in 2024?


For the managing director of Melanion Capital, the impact will be “necessarily positive” on the prices and adoption of cryptos in general. The French company has already recorded more requests for information in three weeks than in the last quarter of 2023!

In 2024, Melanion will closely follow the Ethereum spot ETF, the next step awaited by the crypto ecosystem.

“We will continue to provide education, particularly through our application, which allows you to learn while earning satoshis, via the Lightening Network,” adds Cyril Sabbagh.

This article does not constitute investment advice in any way. The information provided here should not be used as a basis for making financial decisions. Cryptocurrency investments involve risks and may result in significant losses. You should only invest what you can afford to lose and carry out your own research before making any investment decisions.

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