‘Bitcoin-thematic’ ETF lists on Italian stock exchange Borsa Italiana

A Bitcoin-thematic ETF listed on the Borsa Italiana, providing savers, institutions and pensions planners exposure to BTC.

On Tuesday, Borsa Italiana — Italy’s stock exchange — listed a “Bitcoin-thematic” exchange-traded fund (ETF) by Melanion Capital, bringing Bitcoin (BTC) exposure to Italian institutions and retirement plans.

Cyril Sabbagh, managing director of Melanion Capital, told Cointelegraph that “The Melanion BTC Equities Universe UCITS ETF is an equity ETF around stocks in the crypto ecosystem.” He explained that the ETF would be “accessible to as many people as possible.”

“The Italian Stock Exchange (Borsa Italiana) has not accepted any ‘spot ETFs’ but welcomes our thematic ETF!”

Following the successful launch of a Bitcoin-thematic ETF in October 2021 on Euronext Paris, a pan-European stock exchange, Melanion Capital targeted Italy for its ETF. Sabbagh explained:

“In Europe, spot ETFs (exchange-traded funds) are ETNs (exchange-traded notes) or ETCs (exchange-traded certificates) and, as such, carry counterparty risk and are not UCITS (the highest regulatory standard for a fund in Europe).”

The Bitcoin ETF also allows savers to gain exposure to Bitcoin in their retirement plans as a result of the UCTIS specification:

“Today, investors are frustrated that they cannot integrate a crypto allocation into their traditional investment envelopes. Indeed, investors will be able to integrate our ETF into their securities accounts, life insurance policies and even their retirement savings plans (this is already the case in France).”

Nicolas Bertrand, adviser and ambassador of the Global Blockchain Business Council and a former board member of Borsa Italiana, told Cointelegraph that “Italian investors and traders showed early interest in trading Bitcoin and other digital assets.”

Related: Bitcoin investment giant Grayscale debuts ETF in Europe

Despite sluggish price action and calls for a sub-$20,000 Bitcoin price, Bertrand highlighted the interest in digital assets:

“From my position of adviser to a number of crypto exposed businesses and my direct contact with investors, I can confirm that there is a significant level of interest and that a number of firms are getting ready to embrace digital assets.”

Bertrand shared that investor appetite for Bitcoin in Italy has been robust, particularly prior to 2021. “Italy was in the top 10 globally in terms of volume of activity on Bitcoin, and a number of trading venues have emerged offering direct access to these markets.”

Across the road from the Borsa Italiana, the world’s largest crypto exchange, Binance, will soon open an office, while the European Central Bank shared that cryptocurrency ownership in European households is thriving.

Amid crypto bear market, institutional investors scoop up Bitcoin: CoinShares

Bitcoin investment funds are seeing positive inflows while Ether funds continue to be drained, according to industry data.

Digital asset investment products registered positive inflows last week, though the gains were mainly concentrated in Bitcoin (BTC) funds, signaling a more cautious approach to crypto allocation on the part of institutional investors. 

Bitcoin investment products saw cumulative inflows totaling $126 million in the week ending Saturday, according to the latest fund flows report from CoinShares. Year-to-date, Bitcoin investment funds have quietly added $506 million in net inflows.

Investors appear to be allocating to Bitcoin at the expense of Ether (ETH) and other altcoins. Ether funds saw $32 million in outflows, marking the ninth consecutive week of declines. Outflows from Ether investment products have totaled $357.4 million this year.

Meanwhile, investments in multi-asset crypto funds rose by $4.3 million last week, bringing the year-to-date total to $201.3 million.

Grayscale remains the single largest digital asset manager with over $27 billion under management. Roughly 99% of Grayscale’s total assets are devoted to the Grayscale Bitcoin Trust, also known as GBTC.

Related: BTC price approaches $32K as analyst warns of ‘boring’ summer for Bitcoin

Unable to escape the gravitational pull of the traditional financial markets, crypto assets have been in a protracted downtrend for much of 2022. BTC price endured nine consecutive weekly declines — the longest in history — as investor sentiment entered a prolonged period of “extreme fear” on the Bitcoin Fear & Greed Index.

June 6, last week and last month: Bitcoin’s Fear & Greed Index has been in extreme-fear territory.

Bitcoin narrowly avoided its tenth down week in a row by closing at $29,900 on Sunday — a mere $450 higher than the previous week.

Nevertheless, there are some positive signs that institutional investors are buying the dip. In addition to the CoinShares report, a Canadian spot Bitcoin exchange-traded fund operated by Purpose Investments scooped up thousands of BTC last month. By May 13, the Purpose Bitcoin ETF had registered its highest-ever Bitcoin holdings at 41,600 BTC

Over 200K BTC now stored in Bitcoin ETFs and other institutional products

Bitcoin ETPs now have more BTC under control on behalf of clients than ever before.

Bitcoin (BTC) investment vehicles are seeing “gargantuan” inflows this month, which is a fresh sign that traders’ appetite for BTC exposure is mounting.

Data from monitoring firm Arcane Research published this week shows that Bitcoin exchange-traded products (ETPs) now have record high BTC under management.

“Happier days” for Bitcoin ETPs as buyers pile in

Despite BTC price action failing to draw in buyers at over 50% below all-time highs, not everyone is feeling risk-off.

According to Arcane’s data, Bitcoin ETPs have seen a flurry of interest from institutional investors both this month and last.

In total, Bitcoin ETPs, which include products such as the ProShares Bitcoin Strategy exchange-traded fund (ETF), now have 205,000 BTC under their control — a new record.

“While the May recovery was strong in ETPs, June has seen even happier days!” Arcane analyst Vetle Lunde told Twitter followers while uploading the numbers on June 2.

“The first two days of June have seen gargantuan net inflows to Purpose, 3iQ Coinshares, and BITO, pushing the global BUM to a new all-time high of 205,008 BTC.”

Bitcoin ETF investment chart. Source: Vetle Lunde/ Twitter

In the first few days of June alone, more than 7,000 BTC flowed to ETPs, almost as much as for the entirety of May, which, itself, saw an impressive 9,765 BTC rise.

“Massive $BTC inflows into Bitcoin ETFs in June already,” Zhu Su, cofounder of asset manager Three Arrows Capital, reacted.

Little reprieve for GBTC

The Purpose Bitcoin ETF, the first Bitcoin spot price ETF to launch anywhere in the world, meanwhile had $1.294 billion worth of assets under management as of June 3, data from on-chain monitoring resource Coinglass confirmed.

Related: Bitcoin bounces to $30.7K as analyst presents Stock-to-Flow BTC price model rehash

Purpose Bitcoin ETF assets under management chart. Source: Coinglass

Things remained somewhat less rosy for industry stalwart the Grayscale Bitcoin Trust (GBTC), however.

According to Coinglass data, GBTC continues to trade near a record discount to the Bitcoin spot price, currently 28.68% as of June 3.

Previously, Cointelegraph reported on Grayscale’s ongoing battle to convert GBTC to a Bitcoin spot ETF.

GBTC holdings, discount vs. BTC/USD chart. Source: Coinglass

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