The hare and the tortoise in crypto sauce. Planned over a year ago, theETF Bitcoin spot from Jacobi Asset Management should finally see the light of day by the end of the month. While the Americans have launched themselves into the race with all guns blazing, they should be beaten to second place. For once, Uncle Sam is getting the better of the old continent, and we’re not going to deny ourselves the pleasure! The European tortoise got the better of the American hare, even though it was carried along by such behemoths as BlackRock or Fidelity. We’ll be talking about the latter shortly, as it’s part of a brand-new financial product soon to be available on theEuronext Amsterdam. Weapons vigil in London, at Jacobi’s headquarters.
The Old Continent will outrun the New World on Bitcoin ETFs
With all the talk of US institutional ETF applications, you’d almost forget that it’s Europeans who are likely to be able to offer the first Bitcoin ETF. ETF spot on Bitcoin. So, when we say European, it’s in the geographical sense, because concretely, Jacobi Asset Management is a London company, so from a political point of view it’s a failure. But in practical terms, we’re on the right side of the Atlantic, so let’s rejoice in this continental success. Begun over a year ago, the process of launching this ETF should be completed by the end of the month, much to the delight of the asset manager’s management team.
In an article in blog published on the company’s website, Jamie Khurshidthe founder and CEO of Jacobi Asset Management, is quick to point out the nature of the innovative of his product. He even quotes the CEO of Euronext, Stéphane Boujnahwho also stresses the financial originality of this ETF:
« This will be the first Bitcoin ETF on Euronext and the first fund investing directly in Bitcoin. All other products currently existing in our segment are exchange-traded bills or legally structured as debt securities. «
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Jacobi Asset Management sees a huge windfall for institutional investors
And if he insists on this precise point, it’s because other products similar at first sight exist, but the companies offering them do not have bitcoin. Yet this makes a considerable difference in the matter, especially when it comes to the risks for investors.
« The Jacobi Bitcoin ETF is the only regulated exchange-traded fund in Europe where the fund itself holds bitcoin. With our ETF, fund investors directly acquire and hold shares in the fund that holds the bitcoin. In accordance with the regulator’s rules, the fund is fully collateralized, with no leverage. Investors’ funds and the fund assets themselves cannot be rehypothecated or lent to anyone for any period of time. »
Jamie Khurshid is careful to reiterate that bitcoin remains the property from Jacobi Bitcoin ETF at any time and that they will not be exposed to performanceprotocols DeFi or borrowers at risk. In concrete terms, we also learn that it will be Fidelity Digital Assets which will hold the bitcoins on behalf of the fund. Incidentally, this asset manager has also filed an ETF application, but with the SEC. What a small world…
In conclusion, the CEO states that « institutions will finally be able to adopt digital assets as part of their diversified portfolio. ». And offer them to their thousands of customers? Jamie Khurshid believes this. He therefore joins the camp of all those who think that these ETFs will trigger the arrival of the smartmoney in the circuit, as Mike Novogratz said before him.
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