July 11, 2024
Latest Cryptocurrency News

Europe’s First Spot Bitcoin ETF Goes Live on Euronext Amsterdam Exchange

Europe is ready to welcome its inaugural spot Bitcoin exchange-traded fund (ETF) with the launch of Jacobi Asset Management’s Jacobi FT Wilshire Bitcoin ETF. The London-based digital asset management company revealed that the ETF would become active on the Euronext Amsterdam stock exchange on August 15, more than a year after its originally intended launch date in 2022.

This offering was anticipated to be the first-ever spot or physically-backed Bitcoin fund. The unique feature of this ETF is that it allows investors to gain exposure to a financial product that is physically supported by actual Bitcoin (BTC).

Trading under the ticker symbol BCOIN, the ETF secured approval from the Guernsey Financial Services Commission in October 2021. Fidelity Digital Assets will oversee the custodial aspects of the BCOIN ETF. The investment firm emphasized the fund’s environmentally and socially responsible attributes, incorporating a renewable energy certificate (REC) into the ETF.

The fund employs external data to assess the Bitcoin network’s energy consumption. It then purchases and retires RECs, which are tracked on a blockchain platform, enabling investors to verify the fund’s eco-friendly claims. BCOIN utilizes the FT Wilshire Bitcoin Blended Price Index to access real-time average Bitcoin price data from specific cryptocurrency exchanges. This spot ETF empowers investors to engage with the Bitcoin market without necessitating direct ownership or custody of the underlying asset.

This landmark launch of a spot Bitcoin ETF signifies a significant development for Europe. In contrast, U.S. regulators are yet to approve multiple analogous spot Bitcoin ETF proposals submitted by prominent asset managers such as BlackRock and Fidelity.

Jacobi CEO Martin Bednall expressed enthusiasm for Europe’s proactive stance on cryptocurrency investment products, viewing it as a potential catalyst for wider adoption:

“It is thrilling to witness Europe leading the way over the U.S. in enabling institutional investors to securely access the benefits of digital assets through familiar and regulated structures, like our ETF.”

The introduction of the Jacobi Bitcoin ETF follows the introduction of a Bitcoin Equities ETF on the Euronext Amsterdam exchange by Melanion Capital in June 2023. This ETF is designed to mirror the Melanion Bitcoin Exposure Index, comprising a custom selection of European and American stocks closely linked to BTC’s market value.

Diverging from the spot ETF model, investors gain exposure to a fund consisting of stocks from firms with substantial investments in Bitcoin, as well as cryptocurrency exchanges and mining operations. Key contributors include technology firm MicroStrategy, which holds a substantial Bitcoin stash, alongside major Bitcoin mining companies like Riot, Marathon Digital, and Hut8.

Image by Freepik

Disclosure Statement: Miami Crypto does not take any external funding, or support to bring crypto news to the readers. We do not have any conflicts of interest while writing news stories on Miami Crypto.

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