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Jacobi Launches Europe’s First Institutional Bitcoin ETF



Europe welcomes its first Bitcoin ETF for institutional investors. The digital asset offering is powered by Jacobi Asset Management. Bitcoin ETFs, or Bitcoin Exchange-Traded Funds, are investment funds that are designed to track the price performance of Bitcoin, the popular cryptocurrency. These ETFs enable investors to gain exposure to Bitcoin without directly owning the digital asset.

Jacobi Asset Management is a digital asset management firm that was founded in 2020. The company is headquartered in London, England, and it has offices in other European countries.

Its mission is to “champion a world where investors can simply and securely embrace the exciting opportunities presented by the digital economy.” The company’s goal is to provide institutional investors with access to digital assets in a safe and regulated way.

According to a report from the Financial Times, the ETF was originally planned for July 2022, but the launch was postponed due to market conditions following crypto crashes. Unlike previous digital asset exchange-traded products in Europe, this ETF will be structured as a fund.

Financial Times also said that Jacobi Asset Management emphasized that it is launching an ETF, not an exchange-traded note (ETN). With an ETF, each shareholder owns a portion of the fund’s underlying assets, while investors in ETNs hold debt securities instead of the underlying assets. 

Jacobi’s ETF does not use leverage or derivatives, reducing the potential for significant counterparty risk. The company’s co-founder has criticized ETN issuers for misusing the term “ETF” and misleading investors about the inherent risks associated with ETNs.

Speaking about the development, Jacobi said, “It’s no secret that #digitalassets have been making waves in the #investment landscape. Beyond MicroStrategy, banks are exploring various avenues to invest in Bitcoin, indicating a growing mainstream acceptance.”

Bitcoin ETF around the world

Bitcoin ETFs have been a major part of the crypto news since Q2 of 2023. Part of this is due to the appearance of firms such as BlackRock, Fidelity, Invesco, Wisdom Tree, and more. 

Then, in far Asia, specifically Hong Kong, HSBC launched its first Bitcoin and Ethereum ETF in Hong Kong in June. This made HSBC the first bank in Hong Kong to offer such a product. 

The ETFs will allow the bank’s customers to trade the two largest cryptocurrencies on its exchange in the Asian country.

The arrival of a Bitcoin ETF in Europe marks a noteworthy milestone for the cryptocurrency industry. 

It offers investors a regulated and secure means to participate in Bitcoin’s price movements, potentially enticing traditional investors who were previously cautious about venturing into the crypto market.

Read also; Binance to expand DeFi services & include more stablecoins — CZ

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