Jacobi launches Bitcoin ETF — a first for Europe, outshining the U.S.

• The new Bitcoin ETF is trading under the BCOIN ticker.
• The ETF tracks the Melanion Bitcoin Exposure Index which is a custom basket of European and American stocks closely tied to BTC’s market price.

The London-based digital asset management firm, Jacobi Asset Management, announced the launch of its Bitcoin [BTC] exchange-traded fund (ETF) on Euronext Amsterdam on 15 August.

It is for the first time that a Bitcoin ETF has gone live in Europe, with the continent beating the U.S. in the race.

Source: BCOIN, Euronext Amsterdam

The new Bitcoin ETF is trading under the BCOIN ticker; the Guernsey Financial Services Commission authorized the ETF in October 2021. Thereafter, it decided to launch the product in 2022.

However, the company decided to postpone its plans owing to unfavorable circumstances in the crypto asset market. These included the collapse of the Terra ecosystem and the bankruptcy of cryptocurrency exchange FTX last year.

The ETF tracks the Melanion Bitcoin Exposure Index. The Index is a custom basket of European and American stocks closely tied to BTC’s market price.

Unlike the spot ETF, investors acquire exposure to the fund. This is made up of equities from firms with major assets in Bitcoin holdings, cryptocurrency exchanges, and crypto mining activities.

Jacobi announced in its press release that Fidelity Digital Assets would provide custody for the fund. The trading firm Flow Traders operates as its market maker. It charges a 1.5% annual management fee to its investors.

The firm also emphasized the environment-friendly nature of its Bitcoin fund. It has added a renewable energy certificate (REC) to the ETF.

The fund utilizes external data to calculate the Bitcoin network’s energy consumption and then purchases and retires RECs. The RECs are also recorded on a blockchain platform which allows investors to verify the fund’s eco-friendly promises.

U.S. left behind as authorities unleash regulatory tentacles

The launch of the spot BTC ETF marks a watershed moment for the European crypto market. Regulators in the U.S. are yet to permit approval of a number of spot Bitcoin ETF applications as it is taking regulatory action against major crypto exchanges.

At press time, BTC was trading at $29,349. It had lost more than 3% of its value within the last 30 days.

Source: BTC/USD, TradingView