The Euronext Amsterdam stock exchange has witnessed the launch of the Jacobi Spot Bitcoin ETF. Managed by the London-based digital asset firm, Jacobi, this ETF is significant as it represents Europe’s first spot or physical-backed Bitcoin fund, paving the way for investors to explore a new avenue in the crypto realm.
Long-awaited Jacobi Spot Bitcoin ETF
The long-awaited Jacobi Bitcoin ETF has officially launched on the Euronext Amsterdam stock exchange. This comes after a delay of over a year from its initially planned launch date. Managed by the London-based digital asset management firm, Jacobi, this ETF is notable for being Europe’s first spot or physical-backed Bitcoin fund. This means that investors can gain exposure to a financial product that has physical backing by BTC.
BCOIN Ticker
The ETF, which trades under the ticker BCOIN, received approval from the Guernsey Financial Services Commission in October 2021. Fidelity Digital Assets will oversee the custodial aspects of the BCOIN ETF. Additionally, the asset management firm emphasizes the eco-friendly nature of the fund by incorporating a renewable energy certificate (REC) into the ETF. This certificate is based on data measuring the Bitcoin network’s energy consumption, and the RECs are verifiable on a blockchain service.
How does Spot Bitcoin ETF work ?
The ETF uses the FT Wilshire Bitcoin Blended Price Index to provide real-time average Bitcoin price data from selected cryptocurrency exchanges. This allows investors to tap into the Bitcoin market without directly owning or holding the underlying asset.
While Europe celebrates this milestone, the US regulators have yet to approve several similar spot Bitcoin ETF applications from major asset managers like BlackRock and Fidelity. Jacobi CEO, Martin Bednall, expressed enthusiasm about Europe’s progressive stance on cryptocurrency investment products, suggesting it could spur further adoption.
This launch follows the introduction of a Bitcoin Equities ETF on the Euronext Amsterdam exchange. The first ETF was brought by Melanion Capital in June 2023. Unlike the spot ETF, this fund offers exposure to a collection of stocks from companies with significant Bitcoin investments. Like cryptocurrency exchanges, and mining operations.
Key Features of Spot Bitcoin ETF :
- Ticker and Trading: Investors can find and trade this ETF under the BCOIN ticker on the exchange.
- Approval: The ETF secured its official nod from the Guernsey Financial Services Commission in October 2021.
- Custodial Role: Entrusted with the responsibility of overseeing the ETF’s custodial elements, Fidelity Digital Assets plays a pivotal role.
- Eco-Friendly Aspect: In a nod to sustainability, the ETF integrates a renewable energy certificate (REC). This certificate, rooted in data, gauges the energy consumption of the Bitcoin network. Moreover, the blockchain-verifiable nature of the RECs underscores transparency.
Operational Details:
- Price Index Utilization: To provide its investors with real-time average Bitcoin price data, the ETF leverages the FT Wilshire Bitcoin Blended Price Index, drawing from select cryptocurrency exchanges.
- Investment Approach: This ETF offers a unique proposition: investors can delve into the Bitcoin market without the necessity of directly owning or holding the Bitcoin asset.
Comparative Analysis:
- US Regulatory Landscape: Europe’s stride in launching this spot Bitcoin ETF casts a spotlight on the US regulatory scene, where similar ETF applications from heavyweights like BlackRock and Fidelity await approval.
- CEO’s Perspective: Reflecting on this development, Jacobi’s CEO, Martin Bednall, commended Europe’s progressive approach to cryptocurrency investment products. He believes this could be a catalyst for more widespread adoption.
Related Developments:
- Bitcoin Equities ETF: June 2023 saw Melanion Capital rolling out a Bitcoin Equities ETF on the Euronext Amsterdam exchange. Distinct from the spot ETF, this product offers investors exposure to a portfolio of stocks. These stocks belong to companies with substantial Bitcoin investments, spanning cryptocurrency exchanges to mining operations.
Insights for Consideration of Spot Bitcoin ETF:
- The introduction of eco-centric measures like the renewable energy certificate might inspire other crypto products to follow suit.
- Europe’s proactive move in launching a spot Bitcoin ETF could potentially reshape the regulatory narrative in the US.
- With the advent of both spot and equities Bitcoin ETFs, investors now have a richer tapestry of investment opportunities in the crypto space.
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