Jacobi Asset Management has unveiled the introduction of Europe’s inaugural spot Bitcoin exchange-traded fund (ETF) on Euronext Amsterdam
Today, on August 15th, Jacobi Asset Management declared the launch of Europe’s very first spot Bitcoin exchange-traded fund (ETF) on Euronext Amsterdam. Europe has now taken the lead over the US in the potential initiation of trading for a spot Bitcoin ETF.
The listing arrives two years subsequent to the initial ETF authorization. Branded as the ‘Jacobi FT Wilshire Bitcoin ETF,’ the fund presents itself as the foremost digital asset fund compliant with SFDR Article 8, all thanks to its decarbonization approach. This achievement has been made attainable through Jacobi’s integration of a verifiable built-in Renewable Energy Certificate (REC) solution.
The REC solution has been established in partnership with the digital asset platform Zumo. This allows institutional investors to effectively fulfill their ESG objectives while simultaneously accessing the advantages of the flagship cryptocurrency.
The novel ETF will be traded using the ticker symbol ‘BCOIN’ and will be under the regulation of the Guernsey Financial Services Commission (GFSC). The London-based Jacobi Asset Management originally secured approval for the fund in October 2021. At that time, the plan was to initiate the listing in 2022. However, due to unfavorable circumstances within the digital asset market, this did not materialize.
Custodial services for the fund will be offered by Fidelity Digital Assets. Flow Traders will act as the market makers, while Jane Street and DRW will serve as authorized participants.
Jacobi’s ETF offering distinguishes itself from other exchange-traded notes (ETNs), frequently encompassed by the term exchange-traded products (ETP), in the market. While ETN investors possess a debt security, the ETF grants shareholders the authority to hold a share of the product’s underlying shares.
CEO of Jacobi Asset Management, Martin Bednall, shared his thoughts on this accomplishment, stating: “It is thrilling to witness Europe outpacing the US in granting institutional investors secure and regulated access to the benefits of digital assets, employing familiar structures like our ETF… Jacobi is honored to receive support from Tier1 partners who are at the forefront of this transformation in the digital asset market, while concurrently introducing an innovative, ecologically sound solution for European investors.”
The ETF, offering an ESG-aligned digital asset solution, empowers users to make environmentally conscious ETF investments. While it enables them to incorporate Bitcoin into their investment portfolios, it also allows independent verification of environmental assertions.
Elaborating on this aspect, the announcement further clarified: “Jacobi’s solution differs from carbon offsetting products by quantifying the electricity consumption linked to Bitcoin in the ETF and procuring equivalent RECs, the standardized instrument for sourcing clean energy. This provides digital evidence of RECs, transparently recorded on a blockchain.”
Although the US has witnessed numerous applications for spot Bitcoin ETFs, its regulatory body, the Securities and Exchange Commission (SEC), has often been stringent, leading to denials. The recent debut of Jacobi’s ETF might position Europe ahead of the US in terms of launching a spot Bitcoin ETF.
Nevertheless, since the resubmission of the application by asset management giant BlackRock (BLK) for a spot Bitcoin fund, the industry has been anticipating a favorable response from the SEC. This development has also inspired others to submit applications featuring “surveillance-sharing” agreements aimed at safeguarding against market manipulation.
