Beginning in July, the Jacobi Bitcoin ETF will begin trading under the ticker BCOIN on the Euronext Amsterdam Exchange.
Dutch stock exchange major Euronext Amsterdam, a branch of the pan-European exchange Euronext, is launching its first exchange-traded fund for Bitcoin (BTC) (ETF).
The Jacobi Bitcoin ETF will debut on Euronext Amsterdam next month, according to a statement issued by London-based Jacobi Asset Management on Thursday. Under the symbol BCOIN, the spot Bitcoin ETF will begin trading on the Euronext Amsterdam Exchange.
According to Jacobi founder and CEO Jamie Khurshid, the Jacobi Bitcoin ETF will be the first Bitcoin ETF to be introduced in Europe.
“Our product is the first spot or physical-backed Bitcoin fund, and the fund is not allowed to lend, stake or leverage any of the assets it owns. For the first time in Europe, investors buying an exchange-traded Bitcoin product will own the units that own the Bitcoin,” Khurshid said. “There are other exchange-traded products in Europe but no other spot BTC ETF,” he added.
BCOIN will be the first Bitcoin ETF to ever be listed on Euronext, according to CEO of Euronext Stephane Boujnah.”This will be the first Bitcoin ETF on Euronext, or the first fund directly investing in Bitcoin. All other currently existing products on our segment are exchange-traded notes, or legally structured as debt instruments,” he said in a statement. While the launch date was not specified by Euronext, the ETF will debut in July.
As was previously reported, Jacobi has been given the go-ahead to introduce the Bitcoin ETF in October 2021 by the Guernsey Financial Services Commission.
Fidelity Digital Assets, the company’s cryptocurrency division, will handle custody for the Jacobi Bitcoin ETF, while Flow Traders and DRW will act as market makers to assist trading. According to the statement, institutional and professional investors in Europe will be able to access the ETF for a 1.5 percent yearly management fee.
Former Goldman Sachs investment banker Khurshid is optimistic that the upcoming Bitcoin ETF launch would help stabilize the cryptocurrency market during a sharp sell-off. He stated:
“We believe this will now remove the barrier to entry for those investment firms that have mandates to invest in regulated products only and will therefore increase adoption of digital assets bringing more stability and less influence from the whales which is nothing short of a necessity for the crypto industry.”
The introduction of Jacobi’s Bitcoin ETF in the Netherlands marks an important turning point for the global spot crypto ETF market because Amsterdam is known as Europe’s top share trading destination and is expected to surpass London in 2021.
As previously mentioned, with the release of the Purpose Bitcoin ETF in February 2021, Canada became one of the first nations in the world to introduce a spot Bitcoin ETF. In mid-May 2022, Australia introduced its first cryptocurrency ETFs.
Although spot cryptocurrency ETF popularity has increased globally in recent years, the US has not yet authorized a Bitcoin ETF that is backed by tangible assets. Grayscale, a major player in the cryptocurrency investing space, filed a lawsuit against the U.S. Securities and Exchange Commission on June 29 after the agency rejected its request to transform its Grayscale Bitcoin Trust into a spot-based Bitcoin ETF.
