• Jacobi Asset Management achieves a milestone by launching Europe’s pioneering spot Bitcoin ETF on Euronext Amsterdam. 

• This ETF stands out for its ESG dedication, incorporating Renewable Energy Certificates.

Jacobi Asset Management has reached a noteworthy achievement by launching Europe’s first spot Bitcoin ETF on Euronext Amsterdam.

This ETF is remarkable not only due to its pioneering role and its dedication to environmental, social, and governance (ESG) principles. The ETF is the inaugural decarbonized digital asset fund aligned with SFDR Article 8 guidelines. To realize this, Jacobi has incorporated a Renewable Energy Certificate (REC) solution, allowing institutional investors to capitalize on Bitcoin’s advantages while adhering to ESG objectives.

Following approval from the Guernsey Financial Services Commission (GFSC) in October 2021, the company initially aimed to introduce its Bitcoin ETF offering in the preceding year. However, the company delayed the launch, citing unfavorable timing in light of the Terra ecosystem’s downfall and the FTX crypto exchange’s bankruptcy.

Operating with the symbol “BCOIN.” Fidelity Digital AssetsSM assumes custodial responsibilities, while Flow Traders provide market-making services. Authorized Participants include Jane Street and DRW. The ETF’s benchmark derives from the FT Wilshire Bitcoin Blended Price Index, provided by Wilshire Indexes. The inventive REC approach was collaboratively developed and implemented with the digital asset platform Zumo.

Prominent Partners’ Backing and Environmentally Conscious Solution

As per a report from ETF Express, Martin Bednall, CEO of Jacobi Asset Management, shared his excitement regarding Europe’s progressive stance in enabling institutional Bitcoin investments via regulated and familiar setups like ETFs. He highlighted their fund’s distinctiveness in owning the underlying asset, unlike certain European products functioning as debt instruments.

 Bednall also appreciated the backing of prominent partners in the evolution of the digital asset market, emphasizing Jacobi’s commitment to delivering an innovative and environmentally conscious solution for European investors.

During an interview with Decrypt, Jacobi underlined the ETF’s open-ended structure, differentiating it from the common exchange-traded notes (ETNs) prominent in Europe’s crypto-related financial tools. This differentiation holds significance: ETF shareholders possess a share of the fund’s actual underlying assets, whereas ETN investors hold debt security.

Bednall highlighted the greater investor protection inherent in ETFs, which undergo approval and supervision by regulatory bodies. Unlike ETNs, which can include leverage or derivatives, ETFs avoid such components, mitigating the risk of market manipulation.

Mark Makepeace, the CEO of Wilshire Indexes, expressed his enthusiasm for the collaboration with Jacobi. He sees the launch of the Jacobi FT Wilshire Bitcoin ETF as a groundbreaking occurrence that will reshape the global financial landscape. Wilshire Indexes, known for establishing institutional-quality digital asset benchmarks, diligently promotes the growth of the entire digital asset sphere.

The ETF’s structure is tailored to appeal to ESG-oriented investors, enabling them to integrate Bitcoin into their portfolios while independently verifying environmental assertions. Rather than solely offsetting carbon emissions, Jacobi’s strategy involves evaluating the electricity consumption linked to the ETF’s Bitcoin holdings. They then acquire corresponding Renewable Energy Certificates (RECs), standardized instruments for obtaining clean energy. This approach ensures a transparent digital record of RECs through blockchain technology.

Kirsteen Harrison, Environmental Manager at Zumo, highlighted the urgent requirement to reduce the carbon footprint of the cryptocurrency industry. She recognized the growing necessity for businesses to present credible decarbonization plans. Harrison conveyed her enthusiasm for partnering with Jacobi Asset Management to create an ESG-compliant crypto solution, leading to the introduction of Europe’s innovative Bitcoin ETF.

Emanuel van Praag, a Kennedy Van der Laan legal specialist, affirmed their involvement in providing legal advice to Jacobi AM throughout the ETF’s listing procedure. He underscored its unique status as the initial SFDR Article 8 digital assets fund.