Jacobi Asset Management has introduced Europe’s first spot bitcoin ETF with the launch of the Jacobi FT Wilshire Bitcoin ETF (BCOIN NA) on Euronext Amsterdam.
Europe has welcomed its first spot bitcoin ETF.
Regulated by the Guernsey Financial Services Commission, the ETF provides direct ‘physically backed’ exposure to bitcoin, offering investors a liquid, regulated vehicle through which to gain access to the world’s largest cryptocurrency without the technical challenges of setting up private keys or crypto wallets.
The fund’s reference is the FT Wilshire Bitcoin Blended Price Index which calculates a real-time average price for bitcoin using data from vetted exchanges.
The ETF’s bitcoin holdings are stored using an institutional-grade cold-storage custody solution managed by Fidelity Digital Assets. Flow Traders serves as market maker, while both Jane Street and DRW have taken on the role of authorized participants.
Responding to growing concerns over the negative environmental impact of many cryptocurrencies, Jacobi has partnered with digital assets platform Zumo to integrate an environmentally considerate solution into the ETF. The fund regularly quantifies the electricity consumption attributable to its bitcoin holdings and purchases an equivalent amount of Renewable Energy Certificates (RECs), standardized instruments that certify the bearer owns one megawatt-hour of electricity generated from a renewable energy resource. RECs bought by the ETF are independently audited and transparently recorded on a blockchain.
The ETF comes with an expense ratio of 1.50% and is classified as an Article 8 product under the European Union’s Sustainable Finance Disclosure Regulation (SFDR).
Europe has already numerous spot bitcoin products that are structured as exchange-traded notes (ETNs), which essentially are debt instruments that utilize bitcoin as their collateral; however, BCOIN is the first to be wrapped within the more widely known ETF structure.
Martin Bednall, CEO of Jacobi Asset Management, commented: “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 using familiar and regulated structures like our ETF. Unlike other products in the European market which are debt instruments, our fund owns the underlying asset directly. Jacobi is proud to be supported by Tier 1 partners at the forefront of this digital asset market evolution whilst also pioneering an innovative, environmentally sound solution for European investors.”
Despite retail investors’ familiarity with ETFs, Jacobi has maintained an entry point for the ETF that is more suited to professional investors with a minimum required investment of $100,000.
