TOBAM, a French company with $9 bln assets under management, launched the first Bitcoin mutual fund to provide institutional investors an opportunity to invest in cryptocurrency.
Why is it important
Big institutional investors have troubles with going into digital currencies directly – little to none regulation creates high risks they cannot take. Mutual fund helps to mitigate those risks.
Is it only for institutional investors?
Mostly, yes. Regulated investors at the institutional level can benefit from reducing operational barriers and sharing risks in this model.
What can we learn from it
- Some countries might ban crypto, some may support. But the sentiment of the traditional finance institutions is clear – everyone wants Bitcoin, only the way to get to it varies.
- Adoption of Bitcoin at the institutional level (first futures and options, now a mutual fund) for sure benefits its price – currency now trades over $8,300.