In a significant move, Jacobi Asset Management, a London-based firm, has launched Europe’s first-ever exchange traded fund (ETF) for Bitcoin. This pioneering product, now listed on EuroNext Amsterdam Exchange, marks an exciting revolution for digital assets and a transformative moment for global finance. Despite a year-long delay due to unfavorable circumstances, including the crash of the Terra network and the FTX exchange, the Jacobi FT Wilshere Bitcoin ETF is finally live and garnering attention.
This ETF, set to trade under ‘BCOIN,’ engages Flow Traders as its market maker, while relying on Fidelity Digital Assets for custody. Remarkably, the product has been portrayed as a critical instrument intended to drive Bitcoin adoption among institutional investors and several significant players. Furthermore, it levies a 1.5% annual management fee from clients, with such esteemed authorized participants as Jane Street and DRW.
However, viewers see more than simply a new product on offer. The launch signifies a considerable advance from Europe’s prevalent Exchange Traded Notes (ETNs). While ETN investors possess debt security, ETF shareholders have a stake in the fund’s underlying asset, in this case, Bitcoin. It’s a critical distinction, representing a key shift in asset management.
In an interesting move toward sustainability, Jacobi CEO Martin Bednall announced their commitment to minimizing Bitcoin’s carbon footprint. The ETF has become the world’s first decarbonized crypto fund fully compliant with Europe’s Sustainable Finance Disclosure Regulation Article 8. This is a compelling development in the context of growing concerns regarding the environmental impact of cryptocurrency mining.
While Europe advances in its regulation of Bitcoin, contrastingly, the United States remains undecided. The Securities and Exchange Commission (SEC) is still denying similar products, citing fears of potential market manipulation. Bednall points out that the EU, in forging ahead, provides a safer, better-regulated space for Bitcoin. On the other hand, US Bitcoin enthusiasts are hopeful of a possible spot Bitcoin ETF approval following the application of BlackRock and other institutional investors.
Experts anticipate such approval to ignite unprecedented adoption, leading to a new cycle highlighted by robust liquidity and considerable volumes. However, despite these monumental changes in Europe, the price of Bitcoin remains stable at $29,303 at the time of press, alongside Ethereum’s trading price at $1,838.