- The new Bitcoin ETF trades under the BCOIN ticker.
- The ETF tracks the Melanion Bitcoin Exposure Index, a tailored basket of European and US stocks closely linked to the market price of BTC.
London-based digital asset management company, Jacobi Asset Management, announced the launch of his Bitcoin [BTC] exchange-traded fund (ETF) on Euronext Amsterdam on August 15.
It is the first time that a Bitcoin ETF has gone live in Europe, with the continent beating the US in the race.
Source: BCOIN, Euronext Amsterdam
The new Bitcoin ETF is trade under the BCOIN ticker; the Guernsey Financial Services Commission authorized the ETF in October 2021. Then it decided to launch the product in 2022.
However, the company decided to postpone its plans due to unfavorable conditions in the crypto asset market. These include the collapse of the Terra ecosystem and the bankruptcy of cryptocurrency exchange FTX last year.
The ETF tracks the Melanion Bitcoin Exposure Index. The Index is a tailored basket of European and US stocks closely linked to the market price of BTC.
Unlike the spot ETF, investors gain exposure to the fund. This consists of shares of companies with large assets in Bitcoin holdings, cryptocurrency exchanges and crypto mining operations.
Jacobi announced in his press release that Fidelity Digital Assets would provide custody of the fund. The trading company Flow Traders operates as a market maker. It charges an annual management fee of 1.5% to its investors.
The company also emphasized the eco-friendly nature of its Bitcoin fund. It has added a renewable energy certificate (REC) to the ETF.
The fund uses external data to calculate the energy consumption of the Bitcoin network and then buys and withdraws RECs. The RECs are also recorded on a blockchain platform that allows investors to verify the fund’s eco-friendly promises.
US left behind as authorities unleash regulatory tentacles
The launch of the spot BTC ETF marks a turning point for the European crypto market. Regulators in the US have yet to approve some mock Bitcoin ETF applications as it takes regulatory action against major crypto exchanges.
At the time of writing, BTC was trading at USD 29,349. It had lost more than 3% of its value in the past 30 days.
Source: BTC/USD, TradingView
