Bitcoin’s broader ascendancy has been somewhat hampered by the litany of difficulties it presents to investors. These include the near constant specter of risk and systematic vulnerabilities via hackers and other thefts. Looking to enable additional exposure through more controlled means, asset manager TOBAM is launching the first new Bitcoin mutual fund in France.
The offering of a Bitcoin mutual fund is one of the newer constructs in the investing arena, namely in Europe. The past few years have seen the growth of blockchain technology and developments. These have collectively instigated newer offerings such as contracts-for-difference (CFDs), as well as more secure trading capabilities and fully dedicated crypto funds.
Improved risk management in focus
As a $9.0 billion asset manager, TOBAM is installing an Alternative Investment Fund in France, catering to qualified institutional investors. The new fund will look to facilitate the exposure of Bitcoin in tandem with a host of internalized benefits from TOBAM itself. This includes access to the group’s research and IT systems.
Yves Choueifaty, President of TOBAM, commented on the new fund: “Research is the founding pillar of TOBAM, and we have conducted research from a technical, financial, economic, and regulatory point of view on Bitcoin for a year prior to launching this fund. This first move in the world of cryptocurrencies showcases our dedication to remaining ahead of the curve and to provide our clients with innovative products in the context of efficient (i.e. unpredictable) markets.”
2017 has seen the launch of several Bitcoin funds and weighted portfolios carrying the cryptocurrency. However, many of these offerings are wrought with risk as well as overbearing volatility and liquidity constraints – long seen as a headwind for broader crypto investing.
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Indeed: “Bitcoin being a highly diversifying asset, this launch is also an expression of our commitment to diversification in all its forms. Once again TOBAM is ahead of the curve and, in order to remain so, we will continue to reinvest a significant part of our growth into research and innovation for the best interest of our clients,” explained Mr. Choueifaty.
A new durable investing standard?
The new Bitcoin fund will also seek to leverage its in-house computing capabilities to implement fully integrated risk control and straight-through-processing investment systems. This should be welcome news for investors who in recent months have grown accustomed to periodic hacks, thefts, and breaches in exchanges and wallets.
The fund is part of a broader offering from TOBAM that sees Bitcoin, and for that matter a wider basket of cryptocurrencies, have the potential to become durable standards in financial and saving markets.
According to Christophe Roehri, Head of Business Development: “Direct investment in Bitcoin can be operationally challenging, from dealing with the choice of the platform, to maintaining the proper security measures in terms of custody and to managing the changes made to the protocol – hard forks.”
“Our goal is to take control of these operational challenges in order to facilitate access for qualified investors willing to gain exposure to Bitcoin. All of that under the format of a fund,” he added.