VanEck To Launch Bitcoin ETF Exposure For French Pension Plans

Bitcoin ETF issuer VanEck has teamed up with asset manager Inter Invest to launch the first-ever offering of Bitcoin exposure within French retirement savings plans. 

The initiative is facilitated by VanEck’s VBTC Bitcoin ETF, which was also recently launched on Australia’s leading exchange. With a total value of $407 million, the VBTC ETF aims to provide French Pension Savings Plan (PER) investors the opportunity to access digital assets as part of their retirement portfolio.

Bitcoin ETF Integration In Retirement Plans

VBTC is designed to be fully collateralized and tracks the MarketVector Bitcoin VWAP Close Index, which measures the performance of a digital asset portfolio invested directly in BTC. 

The VBTC ETF carries a total expense ratio of 1% and provides investors with a regulated product to gain exposure to the largest cryptocurrency, similar to the newly approved ETF market in the US, which launched in January after receiving approval from the US Securities and Exchange Commission (SEC). 

Martijn Rozemuller, CEO of VanEck Europe, emphasized the company’s belief in BTC as an innovative long-term asset. However, he noted that the current volatility in the cryptocurrency’s price over the past month reflects a value-seeking phase typical of emerging assets. 

Bitcoin retraced to a 6-month low of $53,500 in early July after a failed attempt to retest its current all-time high of $73,500 between May and June, which resulted in a 25% retracement in the BTC price.

Bitcoin has managed to bounce off this low and is attempting to consolidate above the $63,700 level, as seen on the daily BTC/USD chart below. 

On the other hand, Jean-Baptiste de Pascal, Deputy CEO of Inter Invest, highlighted the company’s commitment to the “democratization” of innovative financial assets. 

By integrating crypto assets into its retirement savings plans, de Pascal suggested that the company aims to meet the growing market demand for combining retirement savings with diversification into digital assets.

US BTC ETFs Surpass $16 Billion Milestone

The introduction of Bitcoin ETFs into French pension plans follows the approval of the first crypto ETF listings on the London Stock Exchange in Q2, which granted professional investors access to this asset class. 

However, digital assets still face skepticism, with the European Central Bank (ECB) referring to the approval of spot Bitcoin ETFs by the Securities and Exchange Commission as “the naked emperor’s new clothes.”

Despite this, recent data shows the continued success of the newly licensed market despite periods of significant outflows. On Monday, US Bitcoin ETFs saw a substantial net inflow of $301, marking seven consecutive days of net inflows. 

Notably, BlackRock’s IBIT and Ark Invest ETFs and 21Shares’ ARKB ETF each saw substantial net inflows of $117 million. Bloomberg expert Eric Balchunas noted that Bitcoin ETFs are progressing, crossing the milestone of $16 billion year-to-date. 

Featured image from DALL-E, chart from TradingView.com