Fidelity Digital Assets Chosen to Custody Europe’s First Bitcoin Spot ETF
Fidelity Digital Assets has been selected by Jacobi Asset Management to provide custody services for Europe’s first Bitcoin spot ETF. The ETF, listed under the ticker BCOIN on Euronext Amsterdam, aims to hold long-term Bitcoin assets and offer capital appreciation for investors. While Jacobi Asset Management will not hold the Bitcoin themselves, Fidelity Digital Assets will handle the task. Investors will be charged a 1.5% annual management fee.
Fidelity Digital Assets and EDX Markets
Fidelity Digital Assets is a specialized firm that offers investment, custody, and research services for crypto assets. In 2022, it joined other financial institutions to launch EDX Markets, a compliant cryptocurrency exchange targeting US institutional investors. EDX Markets was officially launched in 2023 and currently lists Bitcoin, Ethereum, Litecoin, and Bitcoin Cash.
The Bitcoin ETF (BCOIN) and ESG
Jacobi Asset Management’s Bitcoin ETF (BCOIN) is designed with an environmentally and socially responsible approach. It is the first decarbonized digital asset fund compliant with Article 8 of the European Sustainable Finance Disclosure Regulation. This regulation promotes funds that have environmental and social objectives. The Bitcoin network has faced criticism from ESG supporters due to its high energy consumption. To address this, Jacobi partnered with Zumo to implement a Renewable Energy Certificate solution.
Hot Take
Fidelity Digital Assets being chosen to custody Europe’s first Bitcoin spot ETF highlights the growing institutional interest in cryptocurrencies. By offering custody services, Fidelity is providing a secure and trusted solution for investors. Jacobi Asset Management’s focus on ESG aligns with the increasing emphasis on sustainability in the crypto industry. Overall, this development showcases the ongoing evolution and maturation of the crypto market.
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