Jacobi to launch Bitcoin ETF in Europe amid tightening rules

Jacobi Asset Management is set to launch a Bitcoin exchange-traded fund (ETF) on the Euronext Amsterdam exchange this month.

In a Releasethe company said the fund will trade under the symbol BCOIN and will be the first exchange-traded equity instrument for institutional investors to access Bitcoin in Europe.

Launch of Jacobi in line with demand for diversification

Jacobi Asset Management revealed that the company will charge a 1.5% annual management fee to provide access to cash ETF investments for institutional and professional investors.

Edd Carlton, institutional digital asset trader at Flow Traders, said the launch was in line “with growing demand from institutional investors looking to diversify their portfolios by adding Bitcoin and other digital assets.”

CEO Jamie Khurshid said, “The Jacobi Bitcoin ETF will provide investors with access to the underlying performance of this exciting asset class via a well-established and reliable investment structure.”

Last year, in October, Guernsey’s financial regulator gave the nod to Jacobi Bitcoin ETF which will be launched as the first Tier 1 Bitcoin ETF. Notably, the AMC provides custody services through Fidelity Digital Assets.

“We are delighted to be working with all of our major partners, including Fidelity Digital Assets and Flow Traders, who have supported us from the start and are an integral part of this European premiere as we are listed on Euronext Amsterdam,” added Khurshid.

Europe tightens its grip on crypto rules

The launch of the ETF comes at a time when the European Union (EU) has approved stricter Anti-Money Laundering (AML) rules for cryptocurrencies.

The rule is an extension of the “travel rule” which requires crypto platforms to collect transaction information and verify customer identities.

Specifically in the Netherlands, Coinbase had also introduced stricter know-your-customer (KYC) requirements for users from June 27. The new rules are in line with the recommendations of the Financial Action Task Force (FATF).

Longer wait for Bitcoin spot ETF in the US

Jacobi’s fund launch also comes amid the U.S. Securities and Exchange Commission’s (SEC) rejection of Grayscale’s spot Bitcoin ETF.

And soon after, Grayscale Investments sued the agency to challenge its decision.

Contrary to what is happening in Europe, the voice of a spot crypto ETF has increased in the United States. Recently, SEC Chairman Gary Gensler stated that Bitcoin is the only crypto asset to be considered a “commodity”.

In the past, Gensler has noted that he is more comfortable with a future-based ETF than with a cash fund. That said, the President’s recent media interactions also make it clear that the SEC, Commodity Futures Trading Commission (CFTC), and other agencies are seeking to follow a unified regulatory regime for crypto oversight.

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Mary I. Bruner