French asset management company Napoleon AM launches a new Bitcoin fund.

A new product named Napoleon Bitcoin Fund will be tied to cash-settled bitcoin futures on the Chicago Mercantile Exchange (CME).

According to its prospectus, the "Napoleon Bitcoin Fund" will be open for trading on December 6th, exclusively for professional investors residing in France. The minimum investment amount is 100,000 euros, and cross-border transactions are not allowed.

The report indicates that this is the first Bitcoin fund released by Napoleon AM's asset management division, a French financial services company. The French financial regulatory authority's website shows that Napoleon Asset Management became a licensed "alternative investment fund manager" in May 2019.

Additionally, it is one of the earliest funds in France to utilize CME cash-settled Bitcoin futures. Its prospectus reveals that the fund seeks to bear the risk of Bitcoin price movements without holding any physical Bitcoin.

CME Bitcoin futures are the only regulated, cash-settled Bitcoin futures product in the United States (CME competitor Bakkt also launched cash-settled Bitcoin futures in Singapore on Monday).

The Napoleon Bitcoin Fund may support more exchanges offering cash-settled Bitcoin futures in the future, hence Bakkt's new product could be one of them. Sergio Gonzalez, Director of Napoleon Asset Management, stated:

We have opened the door to other uses for futures, optimizing replication and keeping the opportunity to obtain the best sources in the future.

The CEO Stéphane Ifrah mentioned in a press release that the fund is the "final result" of discussions with French regulatory authorities. He stated:

We are proud to be a unique regulated fund under French law, contributing to the institutionalization and democratization of digital assets.

Nevertheless, the popularity of investment products related to Bitcoin futures among French investors remains to be seen. An earlier ABM report also indicated a continuous decrease in the number of cryptocurrency funds, with nearly 70 crypto-related hedge funds closing down just this year.

However, U.S. investors show a higher interest in regulated futures products, with CME recently reporting a 61% increase in open interest contracts for its Bitcoin futures compared to the same period last year. Around 50% of the trading volume is outside the U.S., with 26% from Asia, and 21% from Europe and the Middle East.

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