Major Dutch exchange Euronext Amsterdam, part of the pan-European market Euronext, has launched its first Bitcoin (BTC) Exchange Traded Fund (ETF).
Jacobi Asset Management, a London-based digital asset management platform, is preparing to launch the Jacobi Bitcoin ETF at Euronext Amsterdam next month, the company announced Thursday. The spot Bitcoin ETF will start trading on the Euronext Amsterdam under the symbol BCOIN.
The Jacobi Bitcoin ETF has been named the first Bitcoin ETF to be launched in Europe, Jacobi founder and CEO Jamie Khurshid told Cointelegraph.
“Our product is the first real-time or physically backed Bitcoin fund, and the fund is not allowed to lend, share or leverage any of the assets it owns. For the first time in Europe, units that own bitcoin will be owned by investors who purchase an ETC,” Khurshid said. “There are other products that are traded on the exchange in Europe but there is no other spot BTC ETF,” he added.
A Euronext spokesperson confirmed that BCOIN will be the first spot Bitcoin ETF to be listed on Euronext. “This will be the first Bitcoin ETF on Euronext, or the first fund to invest directly in Bitcoin. All other products currently in our sector are exchange-traded bonds, or legally regulated as debt instruments,” he said in a statement. While the ETF will arrive in July, Euronext has not given a specific launch date.
As previously reported, Jacoby has received approval from the Guernsey Financial Services Commission to launch a Bitcoin ETF in October 2021.
Custodial services for the Jacobi Bitcoin ETF will be provided by Fidelity’s crypto arm, Fidelity, while Flow Traders and DRW act as market makers to facilitate trading. Institutional and professional investors in Europe will be able to access the ETF for an annual management fee of 1.5%, the announcement indicates.
Khurshid, a former investment banker at Goldman Sachs, believes that the launch of the new Bitcoin ETF will help bring more stability to the cryptocurrency market amid a massive sell-off. He said:
“We believe that this will now remove the barrier to entry for those investment firms that have mandates to invest only in regulated products, thus increasing adoption of digital assets bringing more stability and less whale influence, which is no less a necessity for the crypto industry.”
The launch of Jacobi’s Bitcoin ETF in the Netherlands is a major milestone in the global cryptocurrency ETF market as Amsterdam is tied for the largest participatory trading venue in Europe, and reportedly overtook London in 2021.
As previously reported, Canada was one of the first countries in the world to launch a Bitcoin ETF with the launch of Purpose Bitcoin ETF in February 2021. Australia launched its first crypto ETFs in mid-May 2022.
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While the global adoption of crypto-exchange ETFs has been on the rise in recent years, the US has not yet approved a Bitcoin ETF. On June 29, crypto investment giant Grayscale launched a legal challenge against the US Securities and Exchange Commission after its request to immediately convert the Grayscale Bitcoin Trust into an existing Bitcoin ETF was denied.