Key takeaways:
- Jacobi Asset Management will launch Europe’s first Bitcoin Exchange Traded Fund (ETF) on Euronext Amsterdam later this month.
- Unlike earlier European crypto offerings, Jacobi’s product is a legitimate ETF, giving shareholders ownership of underlying assets.
In an exciting development for the European financial markets, the region is preparing to introduce its first-ever spot Bitcoin exchange-traded fund (ETF) in 2023. This landmark move comes as a significant step forward in the adoption and mainstream acceptance of cryptocurrencies.
Jacobi Asset Management, a London-based multi-asset investment platform, planned to launch a Bitcoin ETF on the Euronext Amsterdam exchange in July 2022.
However, the asset manager was forced to postpone the offering due to extraordinary market conditions induced by the Terra ecosystem’s collapse in May 2022, as well as the FTX collapse in November.
The Guernsey Financial Services Commission (GFSC) has given the Jacobi Bitcoin ETF permission to launch its Bitcoin ETF in October 2021.
Jacobi, a digital asset exchange, announced its plans to launch a Bitcoin ETF on Euronext this month, citing a shift in market demand since last summer.
According to Jacobi CEO Jamie Khurshid, unlike other European digital asset exchange-traded products that offer ownership of a debt security on the asset, Jacobi’s ETF allows fund investors to directly acquire and own units of the fund that holds Bitcoin.
However, instead of being directly tied to Bitcoin’s performance, this ETF tracks the performance of various companies involved in the cryptocurrency industry. These companies include MicroStrategy, Coinbase, and Robinhood, among others, which have investments in mining operations, Bitcoin holdings, and exchanges.
The Jacobi Bitcoin ETF deviates significantly from the standard exchange-traded notes (ETNs) used for crypto-backed financial instruments in Europe. It distinguishes itself by being a centrally cleared instrument with custody services provided by Fidelity Digital Assets, indicating a significant advancement in the market.
In October 2021, Europe achieved its first approved spot Bitcoin ETF, marking a significant milestone. However, the United States Securities and Exchange Commission (SEC) has consistently rejected all spot Bitcoin ETF proposals thus far.
Nevertheless, in 2023, several prominent institutional players, including BlackRock and Fidelity, have submitted new applications for spot Bitcoin ETFs in the United States, aiming to secure approval and become the first authorized spot BTC ETF in the country.
