Europe is preparing for the launch of its first-ever bitcoin exchange-traded fund (ETF) later this month, which will be listed as BCOIN on Euronext Amsterdam. Jacobi Asset Management, the firm behind the ETF, had previously postponed its launch in 2022 due to concerns arising from the collapses of Terra Luna and FTX. However, the company has now confirmed that it is on track to debut the ETF in July, citing a shift in demand as the reason for proceeding with the launch, media reports said.
Jacobi received regulatory approval for the bitcoin ETF from the Guernsey financial regulator in October 2021. The CEO of Jacobi, Jamie Khurshid, emphasized that unlike other European digital asset exchange-traded products that offer ownership of debt securities, their ETF will enable investors to directly acquire and own units of the fund that holds bitcoin, providing exposure to the underlying asset itself.
Euronext CEO Stephane Boujnah expressed the significance of this development, noting that previous exchange-traded products in Europe were characterized by complex structures and debt instruments, lacking transparency for investors to make informed decisions about risk exposure.
Regarding risk exposure, Jacobi assured institutional investors that their ETF would not involve any exposure to risky borrowers, yield platforms, or decentralized finance (DeFi) protocols. The ETF will not be available for leverage or derivatives, thereby reducing significant counterparty risk. The digital assets underlying the ETF will be independently audited and held in custody by Fidelity Digital Assets on behalf of the fund, ensuring secure storage.
