Jacobi to Launch Bitcoin ETF in Europe Amid Tightening Crypto Rules

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

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

Jacobi launch in alignment with demand for diversification

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

Edd Carlton, Institutional Digital Asset Trader at Flow Traders, said the launch was in alignment “with the growing demand from institutional investors who are looking to diversify their portfolios by adding Bitcoin and other digital assets.”

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

Last year Oct, Guernsey’s financial regulator gave the nod to Jacobi Bitcoin ETF to be launched as the first tier-one Bitcoin ETF. Notably, the AMC provides custodial services via Fidelity Digital Assets.

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

Europe tightens grip around crypto rules

The ETF launch comes at a time when the European Union (EU) has approved tighter anti-money laundering (AML) rules for cryptocurrencies.

The rule is an expansion of the “travel rule” that makes it mandatory for crypto platforms to collect transaction information and check 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 U.S.

Jacobi’s fund launch is also on the backdrop of the U.S. Securities and Exchange Commission’s (SECs) rejection of the spot Bitcoin ETF by Grayscale.

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

In contrast to what is happening in Europe, the voice for a crypto spot ETF has been growing in the U.S. Recently, SEC Chair Gary Gensler said that Bitcoin is the only crypto asset to be considered a “commodity.”

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