Europe Does One Over the US, Lists Its First Bitcoin ETF

Summary:
• Jacobi FT Wilshere Bitcoin ETF is not only giving investors exposure to BTC price movement, but also based on ESG principles.

The first European Bitcoin Exchange Traded Fund (ETF) has been listed on Amsterdam’s Euronext stock exchange. Trading under the symbol BCOIN, the Jacobi FT Wilshire Bitcoin ETF has gone live, signaling a new wake in crypto investment.

BCOIN ETF is designed to not only cater for investor appetite for Bitcoin but also compliant with environmental sustainability, providing a digital asset solution that is consistent with ESG principles. The management fee is 1.5% per year, and fund custody services will be provided by Fidelity Digital Assets. Also, Jane Street and DRW will be among the market makers.

What is an ETF and how does it work with Bitcoin?

An ETF is a pool of tradeable financial assets such as shares or bonds, that investors can easily trade on an exchange.  Using an ETF, you can pool your money from investors and channel it into many different assets at once. The fund’s provider owns the underlying assets and creates a fund to track their performance, selling shares to investors. Also, the assets of an ETF are not owned by the shareholders, only a portion of the fund.

Bitcoin ETFs allow investors to purchase and sell shares through brokerage firms, just as is done with shares. By using derivatives, spot markets, or direct Bitcoin ownership, Bitcoin ETFs are able to track the price of Bitcoin in real time.

Article 8 of the European Sustainable Finance Disclosure Regulation (SFDR) applies to funds promoting environmental and social objectives, and Jacobi FT Wilshere Bitcoin ETF is promoted as the first decarbonized digital asset fund compatible with this regulation. Because of the company’s partnership with the digital asset platform Zumo, institutional investors can now trade Bitcoin while still satisfying their Environmental, Social, and Governance (ESG) requirements.

Has Europe stolen the thunder from the US?

With the launch of this ETF, Europe has taken the lead ahead of the United States in approving the attractive yet contentious investment product. Multiple Bitcoin applications received by the U.S. Securities and Exchange Commission (SEC) have been rejected or delayed by the SEC. Despite this, investors are keeping their fingers crossed that the regulator will accept at least some applications shortly. That could set off a market bull run, considering that major players like BlackRock and Fidelity are among those that have submitted proposals.