Europe Launches First Bitcoin ETF on Euronext Amsterdam Ahead of U.S.

Europe Launches First Bitcoin ETF on Euronext Amsterdam Ahead of U.S.

Crypto News – Europe has taken the lead in the race to launch the first Bitcoin exchange-traded fund (ETF), with London-based Jacobi Asset Management announcing the listing of its product on Euronext Amsterdam. This development comes after receiving approval from the Guernsey Financial Services Commission in October 2021. Originally planned for launch last year, the rollout was postponed due to concerns related to the Terra ecosystem’s collapse and the bankruptcy of the FTX crypto exchange.

Trading under the ticker BCOIN, the Jacobi FT Wilshire Bitcoin ETF is now live. The fund charges investors a 1.5% annual management fee and is backed by custodial services from Fidelity Digital Assets, while market-making responsibilities are handled by Flow Traders. Key participants include Jane Street and DRW.

Jacobi’s CEO, Martin Bednall, highlighted the fund’s significance for institutional adoption of digital assets, providing secure access to Bitcoin while addressing sustainability requirements. The ETF is positioned as the first decarbonized digital asset fund compliant with Article 8 of the European Sustainable Finance Disclosure Regulation (SFDR), catering to environmental and social objectives.

Jacobi collaborated with digital asset platform Zumo to implement a Renewable Energy Certificate (REC) solution. This solution ensures the use of verifiable renewable energy sources, enabling institutional investors to engage with Bitcoin in alignment with their Environmental, Social, and Governance (ESG) objectives. Bednall emphasized that RECs differ from offsets, as they relate specifically to electricity consumption.

In contrast to traditional exchange-traded notes (ETNs), the Jacobi Bitcoin ETF is structured as an open-ended fund, offering a distinct ownership model and investment approach. Unlike ETFs, ETNs represent debt securities and lack the same level of regulatory oversight and investor protection. The ETF’s launch positions European investors ahead of their American counterparts in accessing this sought-after financial product.

In the United States, regulatory approval for a Bitcoin ETF has been elusive, with the Securities and Exchange Commission (SEC) repeatedly rejecting or postponing applications due to concerns about market manipulation. However, recent waves of applications from firms like BlackRock, Fidelity, Valkyrie, and Invesco have reignited hope for a future Bitcoin ETF approval in the U.S.