Jacobi Asset Management, headquartered in London, has unveiled Europe’s inaugural spot Bitcoin ETF -Exchange Traded Fund, which has been listed on the EuroNext Amsterdam Exchange. Despite a one-year delay due to adverse market conditions resulting from the collapse of the Terra network and FTX exchange, the ETF has now launched following its approval by the Guernsey Financial Services Commission (GFSC) in October 2021.
Dubbed the Jacobi FT Wilshere Bitcoin ETF, this product will trade under the ticker symbol ‘BCOIN,’ with Flow Traders serving as its market maker and Fidelity Digital Assets assuming custody responsibilities. The fund carries a 1.5% annual management fee and counts authorized participants such as Jane Street and DRW.
Positioned as a transformative force to encourage Bitcoin adoption among institutional investors and key stakeholders, the ETF’s introduction marks a significant advancement beyond the continent’s prevalent Exchange Traded Notes (ETN), differentiating itself through the ownership structure. While ETN investors possess debt securities, ETF shareholders own a stake in the underlying asset – in this instance, Bitcoin.
Jacobi’s CEO, Martin Bednall, underscores the company’s commitment to minimizing Bitcoin’s carbon footprint by creating the first fully compliant decarbonized crypto fund, adhering to Article 8 of the European Sustainable Finance Disclosure Regulation (SFDR). Collaborating with Zumo, Jacobi has devised a verifiable Renewable Energy Certificate (REC) solution, enabling investors to embrace Bitcoin while aligning with their environmental and social aspirations.
Europe Leads the Way While US Policy Remains Ambiguous
In a landscape where the United States has yet to greenlight a comparable product – attributed to concerns over potential market manipulation according to the Securities and Exchange Commission (SEC) – the launch of the spot ETF in Europe has garnered considerable attention within the crypto community. By leading the way in establishing a secure, regulated, and favorable environment for Bitcoin, the EU has emerged as a notable frontrunner compared to the United States.
Jacobi’s CEO, Bednall, views this development as a catalyst for broader adoption and highlights Europe’s progress in providing institutional investors with secure access to digital asset benefits through regulated structures, like their ETF.
While Bitcoin enthusiasts in the United States remain optimistic about the potential approval of a spot Bitcoin ETF, given applications from institutional players like BlackRock, Fidelity, and Valkyrie, the launch of Europe’s product has not significantly impacted Bitcoin’s price, which remains steady at $29,303, alongside Ethereum (ETH) at $1,838.
Disclaimer: The information provided in this article is for informational purposes only and should not be construed as financial or investment advice. Cryptocurrency investments are subject to market risks, and individuals should seek professional advice before making any investment decisions.