France’s Napoleon Asset Management developed country’s first fully regulated crypto fund
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France’s Napoleon Asset Management developed country’s first fully regulated crypto fund

December 11, 2019      Debarati Ghosh

According to a recent publication by Les Echoes, Napoleon Asset Management, a French company has launched a 100% crypto fund. This fund is specifically for institutional investors. This is officially the country’s first fully regulated crypto fund. The company has allegedly tied up with CME’s (Chicago Mercantile Exchange) cash-settled Bitcoin futures.

This was not the first time that professional traders in France got the opportunity to invest in crypto-based products. Several firms have already launched similar kinds of products. However, Napoleon AM wins the race as it has received official approval by France’s Financial Regulator AMF.

The fund is named “Napoleon Bitcoin Fund” and it is surely not open to all investors. It is reserved only for professional-funds, management companies and others who will be able to put a minimum ticket of 100,000 euros. Also, the fund will require the investor to reside in France because international trading will not be supported. The mentioned fund will not hold bitcoins (BTC) but it will replicate its performance via futures listed on CME.

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Amendment of the pact act

Well, before Napoleon AM, at the end of 2017, Tobam ​​announced the launch of a bitcoin fund, for the first time in Europe. But it was unregulated because of the lack of a suitable framework. The Pact act which was passed in Spring provided the framework. In addition to the status of the crypto service provider platforms, the law has amended the provisions of the Monetary and Financial Code relating to assets eligible for investment by specialized professional funds (SPF). This is the statute adopted by Napoleon Bitcoin Fund.

Since the enactment of the law, any “property “ subject to “registration in a shared electronic registration device”, that is a blockchain, may comprise the assets of a PSO. And there is no limit on exposure. “They can put 100% cryptos,” says a lawyer.

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Future Prospect of France in Crypto Industry

Currently, CME is the only fully regulated Bitcoin futures provider in the US. Bakkt also launched the same but in Singapore. Though Napoleon decided to go with CME for now, they didn’t overlook Bakkt or other future providers yet.

Also, officials from Napoleon Asset Management stated this to be a new way of futures contracts. The company already spent a lot of time discussing and negotiating with AMF. However, the acceptance of this new fund is yet to be seen. Anyway, France has made several moves towards the cryptocurrency industry. This also refers that France is not only supporting digital currency, but they are also keen to regulate them to be useful for investment purposes.

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Debarati Ghosh
Debarati Ghosh

Debarati is a finance MBA who is a keen observer of the current crypto currency market. She likes to read and write about the game changer and industry transforming news of the market.