Cryptocurrencies are popular, despite their wild price swings. Ergo, it is no surprise that Jacobi Asset Management announced on Thursday that it would introduce the first Bitcoin exchange-traded fund (ETF) in Europe on the Euronext exchange.
The business announced that its Jacobi Bitcoin ETF would begin trading on Euronext Amsterdam in July under the ticker symbol “BCOIN.” Jacobi CEO Jamie Khurshid, a former Goldman Sachs banker 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.”
So, what will change now?
CEO Jamie Khurshid founded Jacobi Asset Management in 2021. The company has experience in managing digital assets and is made up of “a diversified team of blockchain, technical, investment, and regulatory specialists.”
“Our goal at Jacobi is to make digital asset investments simpler and more familiar for institutional and professional investors.”
A spot Bitcoin ETF’s listing, according to Edd Carlton, an institutional digital asset trader at Flow Traders, “matched with the growing demand from institutional investors.” In fact, in the U.S, there have been calls for a spot Bitcoin ETF for many years.
However, only three foreign exchange-traded funds have been introduced thus far in Canada, Brazil, and Jersey, and they are all substantially smaller than a majority of U.S-based ETFs. The Jacobi Bitcoin ETF will be the largest spot Bitcoin ETF in the world, building on the spot ETFs in smaller markets.
More accessibility to Bitcoin now
The selection of ETFs available to European investors is less extensive than those available to U.S investors. In fact, only between 15% and 20% of retail investors in Europe utilize ETFs, compared to 40% of those in the U.S.
However, the decision to permit a spot Bitcoin ETF in Europe will probably open up a previously closed channel of entry for organizations like pension funds, mutual funds, and insurance companies. Given the paucity of alternatives for investing in Bitcoin through conventional channels, a spot Bitcoin ETF may become quite popular in Europe.