Europe’s first bitcoin ETF is launched on the Amsterdam stock exchange

This month, Europe’s first bitcoin Exchange Traded Fund (ETF) will be launched on the Euronext Amsterdam exchange. It concerns a so-called spot ETF from Jacobi Asset Management, where bitcoins are actually purchased as collateral.

According to a press release, the fund was approved by the Financial Services Commission (GFSC) in Guernsey in October and the ETF will start trading on Euronext Amsterdam in July under the ticker ?ǣBCOIN?ǥ.

Jacobi works together with Fidelity Digital Assets for management and Flow Traders and DRW are involved as ‘market makers’ for liquidity. Investors pay a management fee of 1.5% for the Jacobi bitcoin ETF.

ETFs

ETFs are a hot topic in the bitcoin community. An ETF is a fund in which stock market investors can invest and trade.

According to many, ETFs are essential for large investors and institutional parties to invest in bitcoin. Such parties would typically have little interest in purchasing bitcoins directly and taking on the management risks. Instead, they prefer – or are limited to – trusted and regulated platforms that offer insurance and guarantees, such as (stock or securities) exchanges.

?ǣThe Jacobi Bitcoin ETF will give investors access to the underlying performance of this exciting asset class through an established and trusted investment structure,?ǥ writes CEO Jamie Khurshid in the press release. ?ǣOur goal at Jacobi is to make digital asset investing easier and more familiar for institutional and professional investors.?ǥ

Spot

There are now several bitcoin ETFs on the market, but these are usually not ‘spot’ ETFs where real bitcoins are purchased as collateral. Investments in such funds therefore have no direct effect on the price, because it does not take away any supply from the free market.

However, the Jacobi bitcoin ETF is a spot ETF – a first in Europe. Investments in the fund are actually used to buy up bitcoins and put them on the balance sheet. An investment in the fund is therefore, as it were, an investment in bitcoin, whether or not with a (listed) intermediary.

?ǣWe are thrilled to be acting as lead market maker for Europe’s first Bitcoin ETF, marking another milestone in the development of the institutional digital asset space ,?ǥ writes Edd Carlton, Institutional Digital Asset Trader at Flow Traders. ?ǣThis is also in line with growing demand from institutional investors looking to diversify their portfolios by adding Bitcoin and other digital assets.?ǥ

According to the press release, Euronext Amsterdam is currently the largest exchange in the world that offers a bitcoin spot ETF. Earlier, spot ETFs were also launched in Australia and Canada.

The US is still lagging behind. Several ETFs have been approved, but spot ETFs have always been rejected by the regulator. Although the pressure on the American regulator is increasing, Wall Street is still waiting.

Read more? Check out our previous articles on ETFs.

 

 

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