Europe Beats US In Bitcoin ETF Race, Now On Euronext Amsterdam

Despite the hype surrounding the spot Bitcoin exchange-traded fund (ETF) applications by Wall Street giants in the U.S., Europe beat the country in the race when its first Bitcoin ETF went live on Euronext Amsterdam.

Following the approval of the Guernsey Financial Services Commission (GFSC) in October 2021 and the delay of the planned launch last year, London-based Jacobi Asset Management announced the listing of Bitcoin ETF on the platform Euronext Amsterdam this week.

"The Jacobi FT Wilshire Bitcoin ETF (the 'ETF') represents the first digital asset fund compliant with SFDR Article 8 through its decarbonization strategy. Jacobi has implemented a verifiable built-in Renewable Energy Certificate (REC) solution which allows institutional investors to access the benefits of Bitcoin whilst also meeting ESG goals," the firm said in its press release.

"We are excited to be launching a new secure, transparent and accessible product to track the performance of Bitcoin," former Goldman Sachs investment banker and Jacobi CEO Jamie Khurshid said.

"We are de-risking investments in crypto by removing the technology risk associated with the physical asset and the counterparty risk associated with traditional funds or tracker products that are unregulated leveraged debt instruments. We are proud to collaborate with Europe's leading regulated firms for a truly tier-1 offering to service market demand, subject to the necessary regulated approval. This is an exciting moment for Europe as regulatory approval comes ahead of those waiting for a decision from the U.S. Securities and Exchange Commission," he added.

The Jacobi FT Wilshire Bitcoin ETF trades under the ticker BCOIN and charges investors a 1.5% annual management fee with Fidelity Digital Assets handling custodial services for the fund and Flow Traders as its market maker.

It also partnered with Zumo, a digital asset platform, to ensure the implementation of a verifiable built-in Renewable Energy Certificate (ERC).

"Undoubtedly, the approval of Jacobi's ETF is one more step in the global process of recognizing crypto assets and incorporating them into the financial system. More investment firms will try to file for ETFs and earn a bigger share of the market while it's not so crowded," YouHodler chief of markets Ruslan Lienkha said in a note sent to International Business Times.

"While the approval attracted a lot of attention, especially in Europe, I don't think it will have a significant impact on Bitcoin price right now. According to the year-over-year BTC supply change based on geographical regions by Glassnode, the European market has been neutral over the last year; the U.S. and Asia have made a major impact on BTC price formation," the executive added.

Lienkha also commented on the impact of Bitcoin ETF in the market, saying, "Basically, more ETFs will bring more liquidity to the crypto market and will stimulate market growth. Also, crypto will be better integrated into the financial system. Investors will have a wider variety of investment instruments available for portfolio diversification."

A research report released by Sanford C. Bernstein this week projected that the market for BTC ETFs could comprise 10% of the crypto assets' market capitalization, which currently stands at $573.88 billion, within two to three years.

It also noted that ETFs would not only boost demand in the spot market but would also facilitate regulatory approval underlining that the probability of a spot Bitcoin ETF in the U.S. has increased.

"With leading global asset managers showing interest in bitcoin (BTC) spot ETFs and potential strategies to address objections from the U.S. Securities and Exchange Commission (SEC), the likelihood of approval has risen," said Bernstein analysts led by Gautam Chhugani.