Tobam says the mutual fund vehicle should make it easier for institutional investors to get exposure to the cryptocurrency.
- Paris-based asset manager Tobam plans bitcoin mutual fund.
- Institutional interest in the cryptocurrency is rising but investing in the unregulated asset remains difficult.
LONDON — French asset management firm Tobam is planning to launch Europe’s first bitcoin mutual fund as interest in the cryptocurrency continues to grow.
Tobam, which had $9 billion in assets under management as of September, plans to launch an unregulated alternative investment fund that will allow institutional investors to gain exposure to bitcoin.
Bitcoin has surged over 5,000% against the dollar so far this year to reach $8,229 on Wednesday morning. Investor interest has risen alongside the price, with over 55 dedicated cryptocurrency hedge funds now in existence and exchange giant CME Group announcing plans to launch bitcoin futures contracts.
However, bitcoin’s essentially unregulated nature makes it legally difficult for many institutions to invest in the cryptocurrency.