In a world where every new crypto product aims to make waves, Jacobi Asset Management’s latest offering did just that, but perhaps not how they intended. Their Bitcoin product, the Jacobi FT Wilshire Bitcoin ETF, was launched amidst claims of being Europe’s first Bitcoin exchange-traded fund. This claim, however, was met with skepticism and debate within the crypto community.
On its launch day, the product saw a modest trading volume, with only 113 shares traded, amounting to just $2,000. This subdued response might have been overshadowed by the more considerable online debate. While some reports hailed it as Europe’s “first Bitcoin ETF,” others quickly pointed out this wasn’t the case.
Patrick Hansen, the director of European Union Strategy and Policy at Circle, took to Twitter to clarify that the headline was “misleading.” He highlighted that Guernsey, where the fund is domiciled, isn’t part of the EU. Moreover, Bitcoin exchange-traded products have been a part of the EU landscape for years. This sentiment was echoed by Bloomberg Intelligence analyst James Seyffart, who noted the presence of numerous Bitcoin ETPs in Europe. He described the claim as “slightly misleading” and viewed it as a form of “regulatory arbitrage.”
CoinShares, a Jersey-based crypto asset manager, already offers a physically-backed Bitcoin exchange-traded product.
Their assets under management are around a whopping $340 million, per their official website. This further underscores the point that a Bitcoin ETF is familiar to Europe.
The Jacobi fund trades as an alternative investment fund on Euronext in Amsterdam. As of now, shares are trading around $19.90. However, trading volumes have been lackluster since its launch. The fund was announced in October 2021 and is slated for a June 2022 launch. Delays ensued due to a mix of macroeconomic conditions, the state of the crypto market, and the implementation of a decarbonization solution.
CoinShares recently published an article to clear up the confusion surrounding ETPs for investors. They emphasized that crypto ETFs and ETPs might seem similar but distinct. The difference primarily lies in the regulatory rules of the investment region. In the US, for instance, an ETF represents products that replicate a benchmark, like Bitcoin. The Securities and Exchange Commission has hesitated to approve a physically backed crypto ETF. In Europe, specific frameworks prohibit funds based on a single or very few components.
