TL;DR
- The first European Bitcoin ETF started trading on the Amsterdam Euronext exchange on August 15th.
- It’s the first physically backed BTC ETF available to European investors interested in Bitcoin holdings.
Traders and European investors interested in purchasing Bitcoin via regulated instruments now have a new option.
The Jacobi FX Wilshire Bitcoin ETF went live on the Euronext Amsterdam exchange on Aug. 15. Although the launch comes a year later than planned, it provides a new avenue for gaining exposure to BTC.
As reported by Finance Magnates, the new ETF will trade under the BCOIN ticker. The Guernsey Financial Services Commission approved the product in October 2021. Since then, Jacobi Asset Management has been struggling to receive regulatory approval.
Introducing Jacobi FT Wilshire Bitcoin ETF
A London-based digital asset management firm is behind this new Bitcoin ETF. Jacobi Asset Management is a European ETF issuer serving institutional investors. Its main goal is to shape the future of digital asset management.
BCOIN is the first spot or physically backed Bitcoin fund trading on a European public market. It provides investors with an instrument traded on the Amsterdam Stock Exchange.
Fidelity Digital Assets will handle the custodial elements of the ETF. More specifically, it’s the company in charge of holding and safely storing Bitcoin on customers’ behalf.
ETFs are trusted tools among investors interested in crypto. Using such instruments provides confidence as well as security. That’s in contrast to traditional exchanges, which have been subject to numerous scandals in the past.
On top of this, Jacobi Asset Management added a renewable certificate (REC) to the EFT. The company talked about how the fund is environmentally and socially friendly.
The fund first taps into Bitcoin network energy usage data to ensure a neutral environmental impact. After that, it buys and retires the RECs.
Since it continues to rely on Proof-of-Work, Bitcoin attracts plenty of criticism. The network is redundant, as all miners verify all transactions happening on the blockchain.
New crypto investing opportunity for Europeans
Now that BCOIN is trading on Euronext, Europeans have another investing tool. This ETF, in particular, uses the FT Wilshire Bitcoin Blended Price Index. It accesses real-time BTC prices using data provided by cryptocurrency exchange platforms.
Using a Bitcoin ETF means you no longer worry about token storage. Traditionally, Bitcoin users must own a wallet and ensure private keys are protected.
Europe reached an important milestone with this ETF. In the meantime, US regulators are reviewing applications from major asset managers such as Fidelity or BlackRock.
Martin Bednall, CEO of Jacobi Asset Management, has talked about Europe’s progressive attitude towards crypto products:
“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…”
Martin Bednall, CEO of Jacobi Asset Management
Bitcoin Equities ETF is another interesting product launched on Euronext in June. Designed by Melanion Capital, it tracks the Melanion Bitcoin Exposure Index. This basket of European and American stocks is tied to the Bitcoin market.
As Bitcoin-related products gain traction in Europe, will the US be able to follow suit? It will be another important development for the industry since the financial market is much bigger in the US.
