The French Financial Markets Authority (AMF) has approved the launch of a fund linked to the digital currency bitcoin for the first time in Europe, fund manager Melanion Capital, which is at the origin of this financial product, announced this Tuesday.

There are already financial products linked to that very volatile currency, but no ETF index fund had been validated as complying with the European Ucits regulation, Melanion Capital told AFP. This regulation guarantees certain protections to individuals who invest in the fund.

The ETF fund will not be tied directly to bitcoin, but will seek to replicate the performance of a basket of companies involved in bitcoin that are listed in North America and Europe.

"This is the first time that an investment vehicle has been validated that allows exposure to an asset that is very volatile, but nevertheless meets all the investor protection criteria," Louis-Arnaud Nguyen, a consultant specializing in 'blockchain' technology, from Azzana, told AFP.

In practice, investors will continue to be subject to bitcoin's value variations, more freed from some risks linked to direct ownership of the cryptocurrency, such as hacking or loss.

In return, they will have to pay a management fee.

"It is a very good instrument for actors who do not know everything about digital currencies and bitcoin, but who wish to expose themselves" to investment, Louis-Arnaud Nguyen summarized.

Melanion's ETF will be traded "initially" on the pan-European Euronext stock exchange, which notably manages the Paris stock exchange.

This new index fund will rely on an index created by Melanion, the 'Melanion Bitcoin Exposure Index', repriced every quarter, "on the third Friday of March, June, September and December, after market close," the firm said in a statement.

Bitcoin, like other digital currencies, saw its value rise sharply in 2020 and early 2021.

This success has attracted banks, brokers and investment firms seeking to make the currency accessible to their customers.