Jacobi and Wilshire Partner to Launch the First Spot Bitcoin ETF in Europe

Europe took a step ahead in its race with the United States to find out who will be the first to list a spot Bitcoin ETF. European investors have been able to access Crypto through ETPs (Exchange Traded Products) - debt instruments which mirror Crypto performance - for several years. However, the race took another turn with the listing of the Jacobi FT Wilshire Bitcoin ETF on Euronext Amsterdam on August 15th.

Meanwhile, across the Atlantic, John Reed Stark, a former SEC insider and seasoned regulatory attorney, has raised concerns about the likelihood of approval for such an ETF in the United States, while many ETF issuers are in the starting blocks. In an assessment posted on August 18th on his X account (ex-Twitter), he estimated the chance of approval as “slim and none.”

With the newly listed ETF, Jacobi Asset Management and Wilshire Indexes try to bring an answer to the convergence of digital innovation and sustainable investing. As mentioned in the fund prospectus, the fund's objective is to “buy and hold all of its assets in long-term holdings of Bitcoin that have been decarbonized by the Promoter” through a Renewable Energy Certificate (REC). It complies with SFDR Article 8.

Even if this product can be seen as a new step in the race between Europe and the United States, it’s essential to distinguish it from the regular UCITS ETF available in Europe. The Jacobi FT Wilshire Bitcoin ETF is regulated by the Guernsey Financial Services Commission (GFSC). It is not structured as a debt instrument like other ETPs and owns the underlying assets directly. This fund is only available to professional investors in the United Kingdom and the Netherlands with a minimum investment threshold set at $100,000 and exhibits a TER of 150 bps. Although it is structured as an ETF, it won’t enjoy the same distribution rules and guarantees as other UCITS ETFs.