In a groundbreaking move, Europe has welcomed its first spot exchange-traded fund (ETF) for Bitcoin on the Euronext Amsterdam stock exchange, led by Jacobi Asset Management. Trading under the ticker symbol “BCOIN”, the ETF is making headlines not only for its innovative focus on decarbonization but also for being a first of its kind in a landscape where other major economies, like the United States, are still wrestling with regulation.
With a keen eye on environmental concerns, BCOIN utilizes a built-in Renewable Energy Certificate (REC) solution in collaboration with Zumo. This aligns the ETF with institutional investors’ ESG (Environmental, Social, and Governance) goals, a prominent trend in today’s investment world. The ETF also complies with Article 8 of the European Sustainable Finance Disclosure Regulation (SFDR), targeting both environmental and social objectives.
Originally planned for a 2021 launch, the Jacobi FT Wilshire Bitcoin ETF faced several delays due to challenges in the crypto market, including the collapse of the Terra ecosystem and the bankruptcy of FTX digital asset exchange. After nearly two years of approval and regulatory navigation, Jacobi finally won the right to list it in October 2021, with the actual launch taking place in 2022.
The ETF charges a 1.5% annual management fee and includes big industry players like Fidelity Digital Assets as custodians and Flow Traders as the market maker. Unlike exchange-traded notes (ETNs), common in Europe, the Jacobi ETF allows shareholders to own a portion of the underlying shares, rather than a debt security.
In stark contrast to Europe’s progressive stance towards crypto, the U.S. Securities and Exchange Commission (SEC) has rejected dozens of applications for a spot bitcoin ETF in recent years, even from major firms like BlackRock and Fidelity Investments. However, new applications featuring “surveillance-sharing” agreements are giving rise to renewed hope for U.S. approval.
Martin Bednall, the CEO of Jacobi Asset Management, has been vocally enthusiastic about Europe’s willingness to foster innovation within the crypto space, offering regulated structures like their ETF for institutional investors.
The listing of BCOIN marks a significant milestone for Europe’s digital asset landscape and draws a clear distinction between the regulatory environments of Europe and the U.S. With its focus on decarbonization and a meticulously planned launch, the Jacobi ETF sets a precedent for future crypto-related financial products and perhaps challenges other economies to follow suit. The quirky headline and the detailed account of BCOIN’s launch celebrate the promise and potential of this new frontier in investing, while highlighting the ongoing challenges and contrasting approaches within the global landscape. Whether the U.S. will follow Europe’s lead or forge its own path remains a captivating question for the future of crypto.
