The London-headquartered Jacobi Asset Management has introduced Europe's first spot Bitcoin exchange-traded fund (ETF) on Euronext Amsterdam. The company obtained approval in 2021 but delayed the launch reportedly due to unpredictable circumstances in the digital asset space.
Dubbed the Jacobi FT Wilshere Bitcoin ETF, the offering will be regulated by the Guernsey Financial Services Commission (GFSC). Listed under the ticker symbol 'BCOIN', the ETF's custody is managed by Fidelity Digital Assets, while trading firm Flow Traders assumes the role of market maker.
Europe Spearheads Spot Bitcoin ETF
The launch positions Europe ahead of the US in approving the first spot Bitcoin ETF, which is a step expected to potentially facilitate the adoption of Bitcoin among institutional investors. In a statement, Jacobi Asset Management highlighted the capacity of the ETF to grant institutional clients secure exposure to digital assets in a regulated manner.
Martin Bednall, the CEO of Jacobi, said in a statement shared with Finance Magnates: "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."
"Unlike other products in the European market which are debt instruments, our fund owns the underlying asset directly. Jacobi is proud to be supported by tier 1 partners at the forefront of this digital asset market evolution whilst also pioneering an innovative, environmentally sound solution for European investors," he added.
ESG Standards
Additionally, Bednall noted the alignment of the fund to the Environmental, Social, and Governance (ESG) standards. Jacobi FT Wilshere Bitcoin ETF quantifies the electricity consumption linked to Bitcoin within the ETF. This approach is reportedly accompanied by the procurement of Renewable Energy Certificates (RECs), which validate the utilization of clean energy.
In 2021, Jacobi Asset Management obtained approval for the spot Bitcoin ETF from the Guernsey Financial Services Commission (GFSC). The regulatory approval reportedly enables the company's investors to trade the fund across a range of traditional stock markets.
Elsewhere, the US Securities and Exchange Commission (SEC) recently postponed the decision regarding the approval for a spot Bitcoin ETF application by Cathie Wood's Ark Investment Management. In recent times, the SEC has turned down numerous requests by asset management firms for the fund in the US.
The basis for the rejections revolved around concerns regarding insufficient monitoring of trading activities that could lead to fraud and manipulation. In contrast, the Australian market watchdog has already granted approval for the spot exchange -traded funds (ETFs) for Bitcoin and Ether.
