London-based investment platform Jacobi Asset Management, which offers institutional crypto products and funds tied to crypto assets, has announced that it will launch Europe's first exchange-traded Bitcoin exchange traded fund (ETF).
The investment product, called the Jacobi Bitcoin (BTC) ETF (BCOIN), is scheduled to begin trading in July on Euronext Amsterdam, a subsidiary of the leading European market Euronext.
The Jacobi Bitcoin ETF received approval from the Guernsey Financial Services Commission (GFSC) in October last year. The GFSC operates as a statutory body in Guernsey, one of the Channel Islands, that oversees many companies, including financial regulators and auditors, banks, payment service providers and investment firms. Custody services of the Jacobi Bitcoin (BTC) ETF will be provided by Fidelity Digital Assets, with Flow Traders and DRW acting as market makers. Jacobi Asset Management will thus offer European institutional and professional investors an ETF product that enables them to invest in Bitcoin indirectly and practically for an annual management fee of 1.5%.
The financial asset will be the first stock to be traded in Europe for institutional investors to invest in Bitcoin, and this product is interpreted as a sign that the cryptocurrency continues to gain traction despite volatile price movements. However, with the Bitcoin ETF, institutional investors will have the opportunity to securely invest in cryptocurrencies through a regulated platform.
Although the price of Bitcoin has depreciated seriously in 2022, institutions have not yet given up on Bitcoin investment. Proshares, which launched the US's first Bitcoin futures ETF earlier this month, has also launched a Bitcoin short-selling ETF product. While the investment product, called BITI, is traded on the New York Stock Exchange, it is offered to institutional investors who want to profit from the fall of the Bitcoin price and want to protect their funds against the fall.