GETTY Bitcoin is moving closer to mainstream use

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This first move in the world of cryptocurrencies showcases our dedication to remaining ahead of the curve Yves Choueifaty, founder of Tobam

Tobam the small Paris-based asset manager has launched Europe's first mutual fund and is looking to draw investor interest in the booming but volatile currency that has surged from $1,000 to $8,300 this year alone. Although early-adopters are now benefitting from a 10-fold price rise, mainstream investors, asset managers and banking professionals continue to steer well clear. There remains a lingering concern that Bitcoin is the currency of cyber crime and the "Dark Web'. Despite the recent progress there are a number of significant regulatory hurdles for asset managers to buy Bitcoin and other cryptocurrencies due to the value being stored in a string of computer code.

GETTY Traditional French investors cannot expose assets to Bitcoin

This means they pass below the radar of financial watchdogs like the UK’s Financial Conduct Authority, and cannot be held by traditional mutual funds or most exchange traded funds. According to the Financial Times, Tobam’s fund is classified as an alternative investment fund, is not traded on an exchange, and is therefore unregulated. However, it has daily liquidity based on market closing prices, and Tobam said it required the approval of France’s financial regulator, the Autorité des Marchés Financiers, to launch the fund. Yves Choueifaty, the founder of Tobam, said the $10bn asset manager had to convince the AMF that the Bitcoin fund’s “framework is protective of investors”. Mr Choueifaty said: "This first move in the world of cryptocurrencies showcases our dedication to remaining ahead of the curve and to provide our clients with innovative products in the context of efficient, i.e. unpredictable, markets".

GETTY Bitcoin's ten-fold price rise has been staggering

Bitcoin's move towards mainstream use is steadily moving along as more people find uses for the decentralised and anonymous currency. Recent praise for Bitcoin has come from a number of unexpected sources and former US Vice President Al Gore described the currency as "pretty cool" and even went so far as to celebrate Satoshi Nakamoto's algorithm for replacing "the function of government". While Eric Schmidt founder of Google said: “Bitcoin is a remarkable achievement. "The ability to create something which is not duplicable in the digital world has enormous value. Lot’s of people will build businesses on top of that.” Reaction to the news on Twitter was muted with user Valentina Romeo saying, "Tobam launches first (unregulated of course) #Bitcoin mutual fund in Europe… What could possible go wrong?" While Simon Taylor claimed the, "creeping legitimisation of Bitcoin continues…"

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