Another bitcoin fund tied to CME’s cash-settled futures gets launched

Quick Take

  • French asset management firm Napoleon has launched a new, regulated fund tied to CME’s cash-settled bitcoin futures
  • Looking ahead, it plans to launch more crypto-related funds 
  • Sergio Gonzalez, director of communication and marketing at Napoleon, told The Block: “We’re aiming to launch the next fund based on a Long-Only Strategy on bitcoin, around Q1 2020” 

French asset management firm Napoleon has launched a new fund, tied to cash-settled bitcoin futures by derivatives exchange giant CME Group.

The fund, dubbed Napoleon Bitcoin Fund, is targeted at institutional investors as the minimum ticket size is 100,000 euros (~$110,000), according to an announcement Tuesday. Napoleon said bitcoin is an “ideal" asset for diversification and optimizing risk-return ratios.

“The fund aims to replicate the performance of Bitcoin via Futures listed on the Chicago Mercantile Exchange in cash settlement, thus avoiding the problem of storing and valuing Bitcoin,” said Napoleon.

The fund is regulated by France's financial regulator, AMF. Stephane Ifrah, president of Napoleon, said that it is the "culmination of our discussions with the regulator and our partners to offer a real alternative to professional investors."

Local investment firm Financière d'Uzès is the custodian of the fund, while the “Big Four” accounting firm PwC is the auditor, per the announcement. The fund is currently available only in France, but Napoleon said it could sell overseas “in a near future.”

Napoleon, licensed and regulated by France's financial regulator AMF, also plans to launch other crypto-related investment products next year.

“We're aiming to launch the next fund based on a Long-Only Strategy on bitcoin, around Q1 2020,” Sergio Gonzalez, director of communication and marketing at Napoleon, told The Block.

Earlier this week, U.S.-based asset management firm Stone Ridge, with over $15 billion in client assets, also launched a bitcoin fund that will invest in cash-settled futures. At present, CME is the only exchange to offer cash-settled bitcoin futures contracts in the U.S.  Bakkt also offers such futures, but they trade on ICE Singapore exchange.


© 2021 The Block Crypto, Inc. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

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