Image Credits: Cryptopolitan
The European market has witnessed a groundbreaking development in the world of cryptocurrency as London-based Jacobi Asset Management introduced the first-ever spot Bitcoin exchange-traded fund (ETF).
This remarkable achievement has garnered significant attention, not only for its innovative approach to cryptocurrency investment but also for its commitment to sustainability.
Jacobi’s ETF: An Article 8 Fund for Sustainability
What sets the Jacobi FT Wilshire Bitcoin ETF apart is its classification as an “Article 8” fund under the European Sustainable Finance Disclosure Regulation (SFDR). Article 8 funds are recognized for their dedication to promoting environmental and/or social characteristics.
This classification signifies a pioneering step in aligning digital assets with environmental and social responsibility.
Decarbonization with Renewable Energy Certificates (RECs)
The CEO of Jacobi, Martin Bednall, proudly touts the Bitcoin ETF as “fully decarbonized,” owing to its strategic investments in renewable energy certificates (RECs).
This approach, however, has raised eyebrows among academic experts who point out the apparent contradiction.
Bitcoin mining is notorious for its high energy consumption, and the ETF’s extensive REC purchases could potentially surpass the energy consumption of its BTC assets.
Read More: Ethereum transaction fees hit a six-month low
A Delayed Launch with Remarkable Features
The Jacobi FT Wilshire Bitcoin ETF officially launched on August 15, trading on the Amsterdam stock exchange.
This launch marked a significant milestone, arriving more than a year after its initially planned debut in 2022.
Investors have eagerly embraced this Bitcoin ETF as it offers a unique opportunity to engage with cryptocurrency through a physically-backed fund backed by real BTC assets.
Eco-Friendly Practices at the Core
One of the key selling points of this ETF is its eco-friendly approach. Jacobi Asset Management utilizes external data to calculate the energy consumption of the Bitcoin network and subsequently acquires and “retires” RECs.
These certificates are recorded on a blockchain service, providing transparency and allowing investors to verify the fund’s commitment to environmentally sustainable practices.
