Europe’s First Bitcoin ETF Set to Launch on Euronext Amsterdam
Jacobi Asset Management is preparing to launch Europe’s first Bitcoin ETF, listed as BCOIN on Euronext Amsterdam. The firm initially postponed the launch due to last year’s collapses of Terra Luna and FTX, but is now on track to launch in July.
Main Breakdowns:
- Jacobi Asset Management gained approval for the ETF in October 2021 from the Guernsey financial regulator.
- The ETF will offer ownership of the underlying asset itself, unlike other European digital asset exchange traded products.
- Euronext CEO, Stephane Boujnah, highlighted the lack of transparency in existing exchange-traded products and the need for informed decision-making.
- The ETF eliminates exposure to risky borrowers, yield platforms, and Defi protocols, reducing counterparty risk.
- The digital assets underlying the ETF will be audited and held in custody at Fidelity Digital Assets.
Risk Exposure for Institutional Investors
Jacobi Asset Management emphasizes that their ETF eliminates the chance of exposure to risky borrowers, yield platforms, or Defi protocols. It cannot be used for leverage or derivatives, reducing significant counterparty risk. The underlying digital assets will be independently audited and held in custody by Fidelity Digital Assets, making it a suitable option for institutional investors.
Hot Take:
The launch of Europe’s first Bitcoin ETF on Euronext Amsterdam is a significant milestone for the cryptocurrency industry. By offering ownership of the underlying asset and ensuring transparency and security, Jacobi Asset Management aims to attract institutional investors and pave the way for broader adoption of digital assets in diversified portfolios.
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