Key Takeaways
- On Thursday, Jacobi Asset Management announced that it would introduce the first exchange-traded fund (ETF) for bitcoin in Europe on the Euronext exchange.
- The company announced that its Jacobi Bitcoin ETF would begin trading on Euronext Amsterdam in July under the ticker symbol “BCOIN.”
- For a 1.5 percent yearly management fee, institutional and competent investors in Europe will be able to purchase Bitcoin through the ETF using the ticket BCOIN.
Despite the extreme price swings, cryptocurrencies continue to thrive with new advancement updates daily. The Thursday announcement by Jacobi Asset Management to launch the first Bitcoin exchange-traded fund (ETF) in Europe on the Euronext exchange was therefore not unexpected.
The company announced that its Jacobi Bitcoin ETF would begin trading on Euronext Amsterdam in July under the ticker symbol “BCOIN.”
According to Jamie Khurshid, CEO of Jacobi and a former banker at Goldman Sachs, “The Jacobi Bitcoin ETF will enable investors to access the underlying performance of this exciting asset class via a well-established and trusted investment structure.”
Fidelity Digital Assets and Flow Traders are supposedly an “integral part” of the fund, according to Jacobi.
Fidelity Digital Assets, the company’s cryptocurrency division, will handle custody for the Jacobi Bitcoin ETF, while Flow Traders and DRW will act as market makers to facilitate trading. According to the announcement, institutional and professional investors in Europe will be able to access the ETF for a 1.5 percent annual management fee.
In 2021, CEO Jamie Khurshid established Jacobi Asset Management. The business is composed of “a diversified team of blockchain, technical, investment, and regulatory specialists” and has management experience in digital assets.
“At Jacobi, our goal is to make digital asset investments for institutional and professional investors simpler and more familiar,” Khurshid continued.
ProShares unveiled its plan to launch an ETF earlier this month with the intention of “shorting” bitcoin, or betting on a future decline in its value, while the U.S. Securities and Exchange Commission turned down a proposal by Grayscale, one of the largest global digital asset managers, to list a spot bitcoin exchange-traded fund (ETF) on the NYSE Arca exchange.
But only three foreign exchange-traded funds—all significantly smaller than the majority of ETFs based in the United States—have been launched so far in Canada, Brazil, and Jersey. Building on the spot ETFs in smaller markets, the Jacobi Bitcoin ETF will be the biggest spot Bitcoin ETF globally.
The decision to allow a spot Bitcoin ETF in Europe is likely to open up a recently inaccessible entry point for businesses like insurance companies, mutual funds, and pension funds. A spot Bitcoin ETF may become very popular in Europe given the lack of options for investing in Bitcoin through traditional channels.
