After a delay of over two years, the long-awaited European Bitcoin ETF has finally launched on Euronext Amsterdam. This ETF, bearing the ticker symbol BCOIN, is brought to the market by Jacobi Asset Management. An important feature of this offering is its focus on environmental sustainability.
The Jacobi FT Wilshire Bitcoin ETF aligns with the European Union’s sustainable finance guidelines. Initially filed for in 2021, the ETF was slated for a July 2022 debut on Euronext Amsterdam. However, market turmoil stemming from the collapse of the Terra ecosystem by fugitive Do Kwon and troubles at the FTX crypto exchange, led to a postponement of the launch.
This spot Bitcoin ETF distinguishes itself from other funds by directly holding BTC. Consequently, this enables investors to participate in the cryptocurrency’s price changes without the need to purchase or manage it directly. In contrast, ETFs relying on futures contracts come with their own unique risks.
Emphasis on Sustainability and Regulatory Oversight: Highlights of the European Bitcoin ETF
A significant highlight of this ETF launch is its strong sustainability focus. Martin Bednall, Jacobi’s CEO, revealed a capital investment to kickstart the ETF’s operations. Moreover, it will introduce a Renewable Energy Certificate (REC) developed in partnership with Zumo.
This REC framework strives to align with sustainability objectives by gauging Bitcoin’s energy usage within the ETF. Upon blockchain-based verification, associated RECs will be obtained and retired, allowing investors to autonomously confirm the fund’s environmentally conscious status.
Regulatory adherence will be overseen by the Guernsey Financial Services Commission (GFSC). Market-making duties will be managed by Flow Traders. Furthermore, authorized participation has been assigned to Jane Street and DRW.
The ETF’s performance will be evaluated against the FT Wilshire Bitcoin Blended Price Index. This index sources data from reputable exchanges to establish a reliable and consistent pricing benchmark.
Comparatively, the regulatory environment in the United States stands in stark contrast to Europe’s approach.
SEC Postpones Verdict on ARK 21Shares Bitcoin ETF Application
The US has given the green light to futures-based Bitcoin ETFs. However, proposals for spot Bitcoin ETFs have encountered setbacks. These rejections stem from worries about potential market manipulation and perceived gaps in trading oversight.
Europe showcases eagerness to enable institutional Bitcoin investments via regulated ETF setups, whereas the US adopts a more prudent approach.
This is evident as the US Securities and Exchange Commission (SEC) has delayed its ruling on Cathie Wood’s Ark 21Shares Bitcoin ETF proposal, which was initially slated for August 13. The postponement has fueled anticipation within the crypto community. The SEC’s decision carries substantial influence over the trajectory of digital asset investments.
Market participants are eagerly awaiting insights from both the SEC and the judiciary, which are poised to shape the landscape of the digital asset domain.
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