BCOIN, the first bitcoin ETF in Europe, is scheduled to be launched later this month on Euronext Amsterdam. The launch was delayed from 2022 due to concerns stemming from the Terra Luna and FTX collapses. However, Jacobi Asset Management, the firm behind the ETF, has stated that the demand has now shifted, paving the way for its launch in July. 

In October 2021, Jacobi received approval for the ETF from the Guernsey financial regulator. The CEO of Jacobi, Jamie Khurshid, emphasized that unlike other digital asset exchange-traded products in Europe, which are structured as exchange-traded notes, their ETF would provide direct ownership of the underlying asset. This distinction allows fund investors to directly acquire and possess the units of the fund, which represents ownership of bitcoin.

Stephane Boujnah, the CEO of Euronext, acknowledged the significance of this development, stating that Europe had only witnessed exchange-traded products with complex debt structures lacking transparency for investors to make informed decisions about their risk exposure.

Jacobi’s ETF aims to mitigate risk exposure for institutional investors. The company assures that the investment will not result in any exposure to risky borrowers, yield platforms, or Defi protocols. Furthermore, the ETF cannot be utilized for leverage or derivatives, eliminating 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.

With these assurances and the potential for increased transparency and security, Jacobi Asset Management believes that institutions can now consider adopting digital assets as part of their diversified portfolio.

Reference