How Jacobi Spot Bitcoin ETF is Classed as ‘Environmental Investing’

The First Spot Bitcoin ETF in Europe

The first-ever spot Bitcoin exchange-traded fund (ETF) to launch on the European market has been classified as an Article 8 fund by its issuer firm, London-based Jacobi Asset Management. These funds are included under Article 8 of the European Sustainable Finance Disclosure Regulation (SDFR) and promote environmental and/or social characteristics.

On Aug. 29, Bloomberg reported that Jacobi Asset Management had classified its Jacobi FT Wilshire Bitcoin ETF as an Article 8 fund. The fund, launched on the Euronext Amsterdam stock exchange on Aug. 15, is the first Bitcoin ETF traded in Europe and the first to have the European Union’s environmental, social and governance investing rules applied.

Martin Bednall, Jacobi’s CEO, calls the ETF “fully decarbonized” for its partial investments in renewable energy certificates (RECs). However, experts questioned by journalists posed a contradiction: With Bitcoin’s mining energy intensity, the ETF would need to purchase a high amount of RECs to match the volume of energy consumed by its Bitcoin assets.

The Jacobi FT Wilshire Bitcoin ETF went live more than a year later than its planned launch in 2022. It is the primary spot, or physically-backed, Bitcoin (BTC) fund, providing investors with access to a financial product supported by actual BTC.

At Jacobi Asset Management, the ETF was designed to be eco-friendly from the beginning. To measure the energy consumed by the Bitcoin network, external data is used. The fund then buys and “retires” RECs, which can be tracked on a blockchain service to let investors confirm the fund’s green credentials. Web 3.0 is an important part of blockchain fundamentals, and with the best live crypto and best stock and crypto app, investors can access Web 3.0 and gain insights from AI stock latest and AI article writer.