Jacobi had originally planned to launch the ETF last year, but it was delayed due to regulatory hurdles.
Jacobi Asset Management had originally planned to launch its Bitcoin ETF last year, but it postponed the launch due to the collapse of the Terra ecosystem and the bankruptcy of the FTX crypto exchange. The firm deemed it an inopportune time to launch the ETF, as the cryptocurrency market was in a state of turmoil.
The ETF is the first of its kind in Europe, and it is expected to be popular with investors looking for exposure to Bitcoin in a more traditional investment vehicle.
Fidelity Digital Assets provides custodial services for the Jacobi FT Wilshire Bitcoin ETF, while Flow Traders acts as the market maker. Authorized participants include Jane Street and DRW.
Jacobi CEO Martin Bednall said that the fund was designed to give institutional investors a simple, secure, and transparent way to access Bitcoin. He also said that he believes the ETF launch will be a catalyst for institutional adoption of digital assets.
The Jacobi FT Wilshire Bitcoin ETF is the first decarbonized digital asset fund compliant with Article 8 of the European Sustainable Finance Disclosure Regulation (SFDR). This means that the fund has been designed to promote environmental and social objectives.
This solution allows the fund to offset the carbon emissions associated with its Bitcoin holdings.
As a result, the Jacobi FT Wilshire Bitcoin ETF is a good option for investors who are looking for a way to invest in Bitcoin while also meeting their ESG objectives.
The Jacobi CEO explained that RECs and offsets are two different types of carbon credits. RECs (Renewable Energy Certificates) represent the environmental attributes of 1 megawatt-hour (MWh) of electricity generated from renewable sources, such as solar, wind, or hydro. Offsets, on the other hand, represent the reduction of greenhouse gas emissions from any source.
The REC solution used by the Jacobi FT Wilshire Bitcoin ETF verifies the utilization of renewable energy sources to offset the carbon emissions associated with the fund’s Bitcoin holdings.
This means that the Jacobi FT Wilshire Bitcoin ETF can claim to be fully decarbonized, even though it still generates some carbon emissions from its Bitcoin holdings.
Jacobi Asset Management emphasized that its Bitcoin ETF will be an open-ended fund, which is a different structure from the traditional exchange-traded notes (ETNs) that are currently the most popular type of crypto-backed financial instrument in Europe.
One key distinction between an ETF and an ETN is that ETF shareholders own a stake in the underlying assets held by the fund, while ETN investors own a debt-security. This means that ETF investors have more protection from risk, as they are not exposed to the credit risk of the issuer.
The launch of Jacobi’s Bitcoin ETF is significant because it will give European investors access to a more secure and regulated investment product. It is also likely to increase demand for Bitcoin in Europe, as more investors gain exposure to the asset through the ETF.
The launch of Jacobi’s Bitcoin ETF also puts pressure on the SEC to approve a Bitcoin ETF in the United States. The SEC has repeatedly rejected or postponed applications for Bitcoin ETFs, citing concerns about market manipulation. However, the renewed interest in Bitcoin from institutional investors is likely to make it difficult for the SEC to continue to deny approval for Bitcoin ETFs.
