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French boutique Napoleon launches futures-based bitcoin fund

Thursday, December 12, 2019
Opalesque Industry Update - Napoleon Bitcoin Fund, a Specialized Professional Fund under the French law, with daily liquidity, created on 8 th November 2019, is one of the first regulated vehicles in the world offering exposure to the performance of Bitcoin, the main digital asset.

With an expertise in quantitative management, blockchain and digital assets, Napoleon AM aims to support institutional and professional investors in their search for portfolio diversification.

Blockchain is a particularly promising technology in that it completes the process of digitizing the economic and social environment created by the computer.

While the emergence of the Internet at the end of the 1990s made it possible to digitize data, ten years later, social networks have digitized human interactions and disrupted the marketing paradigm.

Blockchain was born with Bitcoin in 2008. Today, this technology which digitizes value (Bitcoin being created as 'digital gold') has been adopted by many large companies.

Convinced of the major transformation challenge carried by the blockchain for the entire industry, Napoleon AM got quickly interested in the financial potential of what intrinsically emanates from public blockchains, digital assets.

In this respect, the first digital asset, Bitcoin, is particularly unique. With more than 10 years of existence, a market value of around USD 137 Billion and a daily trading volume of over USD 17 Billion, Bitcoin has unprecedented characteristics: very high volatility, an abnormally biased performance distribution in favor of positive returns and a very low correlation to traditional assets (shares, bonds, commodities). It is therefore the ideal asset to introduce into a diversified portfolio to optimize risk/return ratios.

It is in this quest for innovation that Napoleon AM is launching the Napoleon Bitcoin Fund, the first of a series of regulated funds for professional clients.

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

Stéphane Ifrah, President of Napoleon AM, states: "This fund is the culmination of our discussions with the regulator and our partners to offer a real alternative to professional investors. We are proud to contribute to the institutionalization and democratization of digital assets through a unique regulated fund under the French law."

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