Jacobi BCOIN ETF could become the first Bitcoin ETF in Europe

Assets management firm Jacobi will now offer its spot Bitcoin exchange-traded fund (ETF) to European retail investors. The move follows regulatory approval by the Guernsey Financial Service Commission.

According to an announcement from the firm, the Jacobi FT Wilshire Bitcoin ETF (BCOIN), launched in 2023 on Euronext Amsterdam, will no longer be restricted to professional and institutional investors, with regulators now deeming it safe enough for retail.

It said:

“Retail investors, subject to the rules of their respective national regulators, can now access the Jacobi Bitcoin ETF via regulated brokerage and investment platforms.”

The firm stated that this will increase accessibility to the product, which is in line with its mission to provide secure exposure to digital assets. With nearly two years of regulatory oversight as an institutional-grade product, removing the barriers is expected to boost its appeal.

Meanwhile, the announcement noted that removing the restrictions on who can invest and the minimum investment amount is due to Bitcoin’s evolution over the past few years, making the once-niche cryptocurrency a mainstream asset.

Jacobi BCOIN ETF could become the first Bitcoin ETF in Europe

Interestingly, the Jacobi-issued BCOIN could become the first Bitcoin ETF to trade in Europe. While several issuers, including CoinShares and Bitwise, have issued physical Bitcoin exchange-traded products (ETPs), there is no ETF for crypto assets.

This is due to the Undertaking for Collective Investment in Transferable Securities (UCITS) framework, which does not allow funds with only one component.

Despite the difference in nomenclature and framework, crypto ETPs in Europe are similar to the spot crypto ETFs in the US. CoinShares physical Bitcoin ETP and Bitwise Bitcoin ETP dominate the market with €1.499 billion and €1.198 billion, respectively.

With BCOIN entering the scene, it hopes to attract investors’ interest in a sector with over 100 crypto ETP products. This could prove challenging given that even BlackRock IBIT ETP has only around €260 million. Presently, Jacobi BCOIN has around $1.9 million in assets under management.

Meanwhile, Jacobi CEO Peter Lane praised Gurnsey’s approach to regulating the digital assets sector while adding that the firm is excited to make the Bitcoin ETF accessible in eligible countries.
He said:

“We applaud Guernsey as an innovative jurisdiction who have embraced the evolution of digital assets and look forward to bringing more innovative, digital asset products to market with robust regulatory oversight.”

To secure approval, the UK-based asset manager worked with other firms, including Sigma Asset Management,  Collas Crill, and Midshore Consulting. Guernsey is a dependency of the United Kingdom.

Experts say BlackRock IBIT could finish 2025 with over 1 million BTC by 2026 ending

While Jacobi is looking to attract investors to BCOIN ETF, spot Bitcoin ETFs in the US have seen sizable outflows for three consecutive days since May 29 as BTC price appears to be consolidating after the recent rally.

According to Farside Investors data, spot Bitcoin ETFs have bled $1.23 billion over the past three days, with BlackRock IBIT alone seeing $561.4 million in outflows in the past two days.

Despite the massive outflows, BlackRock IBIT remains a top performer and is expected to hit a new high soon. Bloomberg senior ETF analyst Eric Balchunas has predicted that BlackRock could become the biggest holder of Bitcoin by the end of next year, surpassing Satoshi, who has 1.123 million BTC.

He said:

“After only 16 months on the market, BlackRock’s iShares Bitcoin Trust ETF (IBIT) is the second-biggest holder of the token and on pace to pass Satoshi as the world’s largest by the end of 2026. IBIT has bought almost $50 billion worth of Bitcoin.”

Unsurprisingly, IBIT is already the youngest ETF to be in the top 25 ETFs by value in over a decade, with over $70 billion in AUM, which is enough to rank it 23rd among the top ETFs.

KEY Difference Wire helps crypto brands break through and dominate headlines fast