The first Bitcoin EFT spot is set to launch on the Euronext exchange in Amsterdam. Jacobi Asset Management said it will be launching the spot Bitcoin in July. The asset will be called the Jacobi Bitcoin EFT and it will be listed on Euronext.
The Reason Behind a Bitcoin EFT
Professional and institutional investors in Europe will be able to invest in Bitcoin through Jacobi. And it will cost them only 1.5% on an annual basis as a management fee. The agreement is contained under the ticket BCOIN.
Jacobi Asset Management is led by Jamie Khurshid, a former banker at Goldman Sachs. The company was founded in 2021. It is made of a team of experts on regulations, investments, blockchain, and technology.
Each member of the company’s core team has a history in digital asset management. Khurshid said the EFT will let investors access the performance of the asset class. It will be provided through a properly-established and secure investment platform.
Khurshid said further that Jacobi plans to make digital investments easier for investors. The company will also make professionals and institutions familiar with the asset class. Flow Traders and Fidelity Digital Assets are part of funds, Jacobi said.
Getting Bitcoin
Listing a spot Bitcoin EFT is in tandem with the increasing demand by institutional investors. This is according to a trader at Flow Traders, Edd Calton. The demand for a spot Bitcoin EFT has been in the United States for years.
But then, the only spots EFT available are in Jersey, Brazil, and Canada. These are, however, a lot smaller than EFTs based in the United States.
The Jacobi EFT is in place to become the world’s biggest spot Bitcoin EFT. This is mainly because it builds on the existing smaller EFT markets.
In all, the same varieties of EFTs are not available to European investors as Americans. Only 15% to 20% of European retailers use EFTs against 40% in the US. Therefore, there are lower EFT trading volumes in Europe.
Note that the European Commission is considering removing EFTs from a consolidated tape. The move letting a spot Bitcoin EFT in Europe will allow funds to have access to Bitcoin.
It is very likely that a spot Bitcoin EFT will become popular in Europe. This is because there are no options to invest in Bitcoin through traditional means.