Europe’s First Spot Bitcoin ETF Goes Live, Beating U.S. To The Punch

Europe has usurped the United States with the listing of its first spot exchange-traded fund (ETF) on the Euronext Amsterdam stock exchange by London-based Jacobi Asset Management. The spot ETF will trade under the ticker symbol “BCOIN” and has a focus on decarbonization.

Jacobi Asset Management has rolled out the first spot Bitcoin ETF in Europe

After receiving the green light from the Guernsey Financial Services Commission (GFSC) in October 2021, the firm initially planned to launch its spot Bitcoin investment vehicle last year. It, however, decided to shelve the launch due to an inopportune time in the cryptosphere following the implosion of the Terra network and the bankruptcy of Sam Bankman-Fried’s FTX digital asset exchange.

But today, the Jacobi FT Wilshire Bitcoin ETF has finally been listed for trading. The physically-backed Bitcoin fund will charge investors a 1.5% annual management fee. Fidelity Digital Assets provides custodial services for the fund, and Flow Traders takes on the role of market maker. Jane Street and DRW have been added as Authorized Participants.

BCOIN makes use of the FT Wilshire Bitcoin Blended Price Index to access real-time average Bitcoin price data from select crypto exchanges. The ETF product will allow investors to gain access to trading and holding Bitcoin’s value without the hassle of holding the underlying asset.

Jacobi teamed up with Zumo to create a verifiable built-in Renewable Energy Certificate (REC) solution, which allows institutional-grade investors to invest in BTC while remaining compliant with their Environmental, Social, and Governance (ESG) objectives.

The spot BTC ETF is touted as the first decarbonized digital asset fund in line with Article 8 of the European Sustainable Finance Disclosure Regulation (SFDR), which applies to funds fostering environmental and social objectives.

“Jacobi has implemented a verifiable built-in Renewable Energy Certificate (REC) solution which allows institutional investors to access the benefits of Bitcoin whilst also meeting ESG goals.”

The rollout of Jacobi’s spot ETF marks a significant milestone for Europe, while the U.S. Securities and Exchange Commission is yet to approve a new wave of similar applications from traditional finance heavyweights such as BlackRock and Fidelity Investments — which have even included “surveillance-sharing” agreements designed to safeguard against market manipulation in their filings.

Martin Bednall, the CEO of Jacobi Asset Management, remarked on the continent’s progressive stance toward crypto investment products as a potential driver for more adoption:

“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.”

Whether American investors soon get a spot Bitcoin ETF like their European counterparts remains to be seen.