London-based Jacobi Asset Management has announced the release of Europe’s first spot Bitcoin (BTC) Exchange Traded Fund (ETF) which will be listed on the EuroNext Amsterdam Exchange.
The ETF went live today after a one-year delay due to unfriendly market conditions (the collapse of the Terra network and FTX exchange) after it received approval from the Guernsey Financial Services Commission (GFSC) in October 2021.
Termed the Jacobi FT Wilshere Bitcoin ETF, it will trade under the ticker ‘BCOIN’ with Flow Traders acting as its market maker while Fidelity Digital Assets would provide custody.
“The launch of the Jacobi FT Wilshire Bitcoin ETF is an important milestone for the digital asset industry and a transformative moment for the global financial industry. We are excited about the partnership with Jacobi and, as a leader in the development of institutional-grade digital asset benchmarks, we are committed to helping accelerate the advancement of the entire digital asset ecosystem.”
The fund charges its clients a 1.5% annual management fee with authorized participants including Jane Street and DRW.
The product has been touted as a game changer meant to drive adoption around Bitcoin among institutional investors and other key players.
The launch of the product marks a significant leap from the continent’s popular Exchange Traded Notes (ETN) whose distinction lies in the structure of ownership. While ETN investors own debt security, ETF shareholders own a stake in the fund’s underlying asset, in this case, Bitcoin.
Jacobi CEO Martin Bednall noted the company’s commitment to reducing the carbon footprint around Bitcoin as the product becomes the first decarbonized crypto fund fully compliant with Article 8 of the European Sustainable Finance Disclosure Regulation (SFDR).
The company explained that it partnered with Zumo to create a verifiable Renewable Energy Certificate (REC) solution that allows investors to adopt Bitcoin while meeting their environmental and social goals.
Europe takes the lead, US policy remains uncertain
A major talking point on the launch of the spot ETF around crypto circles was the failure of the United States to approve a similar product with the Securities and Exchange Commission (SEC) citing fears of possible market manipulation.
Describing it as a catalyst for more adoption, Bednall noted that the EU is taking the lead against the United States in providing a safe, regulated, and friendly space around Bitcoin.
“It is exciting to see Europe moving ahead of the US in opening up Bitcoin investing for institutional investors who want safe, secure access to the benefits of digital assets using familiar and regulated structures like our ETF.”
Bitcoin enthusiasts in the US are quite optimistic about the potential approval of a spot Bitcoin ETF following the application of BlackRock and other institutional investors like Fidelity, Valkyrie, etc.
Experts have projected a massive adoption around assets capable of springing up a new cycle characterized by fresh liquidity and high volumes should the US approve a spot BTC ETF.
The launch of the product in Europe has left the price of the asset unchanged as it exchanges hands for $29,303 at press time while Ethereum (ETH) trades at $1,838.