London-based Jacobi Asset Management has unveiled Europe’s inaugural spot Bitcoin exchange-traded fund (ETF), designating it an Article 8 fund under the European Sustainable Finance Disclosure Regulation (SDFR).
Article 8 funds are recognized for their emphasis on “environmental and/or social characteristics.”
The pioneering Jacobi FT Wilshire Bitcoin ETF, launched on the Euronext Amsterdam stock exchange on August 15, signifies Europe’s maiden Bitcoin ETF and aligns with the European Union’s guidelines for environmental, social, and governance (ESG) investments.
According to an August 29 report by Bloomberg, Jacobi Asset Management’s CEO Martin Bednall labeled the ETF as “fully decarbonized,” attributing this classification to its investment in renewable energy certificates (RECs).
However, skepticism arose among academic experts consulted by journalists, who pointed out a seeming paradox: the ETF’s Bitcoin assets possess such high energy demands due to the energy-intensive nature of Bitcoin mining that the volume of RECs needed to offset these demands could potentially surpass the energy consumed by the Bitcoin holdings themselves.
READ MORE: Hashdex Challenges Status Quo with Innovative Approach in Pursuit of Bitcoin ETF Approval
The Jacobi FT Wilshire Bitcoin ETF’s launch transpired over a year later than initially intended in 2022.
Marketed as the leading physically-backed Bitcoin fund, the ETF offers investors an avenue to engage with a financial instrument supported by actual Bitcoin assets.
Since inception, Jacobi Asset Management has consistently underscored the ETF’s eco-friendly profile.
The fund employs external data to estimate the energy consumption of the Bitcoin network, subsequently procuring and retiring RECs.
These certificates are monitored via a blockchain platform, empowering investors to verify the ETF’s assertions of its environmentally conscientious practices.
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