Introduction

In a world where investment opportunities evolve with technology, the intersection of environmental responsibility and financial innovation has never been more crucial.
Zumo has proudly helped Jacobi Asset Management ​​align Europe’s first spot Bitcoin ETF with net-zero principles, listed on 15th August on Euronext Amsterdam.
This case study explores the details of this pioneering effort and showcases how Zumo can help other asset managers launch ESG-aligned Spot Bitcoin ETFs.

The challenge

• In recent years there has been significant growth in assets under management (AUM) for the three main ESG strategies, SFDR Article 8, Article 9, and impact investing, according to research by Preqin. It reported that from 2020 to Q2 2022, Article 8 AUM rose by more than 54%, from $89.9bn to $138.8bn, whilst Morningstar reported that Article 8 and Article 9 fund assets passed the EUR 5 trillion milestone, reaching EUR 5.04 trillion at the end of June 2023.
• Meanwhile, the digital asset sector has faced a significant challenge: how to provide access to the lucrative world of Bitcoin while maintaining a commitment to environmental sustainability.
• Traditional Bitcoin investments have been criticised for their associated energy consumption. The goal was to create a product that not only provided access to digital assets but did so in a way that was in alignment with ESG (Environmental, Social, and Governance) goals.

Jacobi wanted to pioneer unique access to digital asset investing for institutional and ESG considerate investors.

The solution

Jacobi decided to leverage Zumo’s research and expertise in tackling digital assets’ carbon footprint. It selected Oxygen to provide its institutional investors a Bitcoin exposure that aligns with ESG principles.

Here is how:

1. Creating an ESG-aligned Digital Asset Fund

• Jacobi chose Zumo’s managed Renewable Energy Certificate (REC) solution that matched the electricity consumption linked to bitcoin in the fund with the procurement of renewable energy certificates.
• This approach enables investors to enjoy the benefits of Bitcoin investment while also respecting ESG goals.
• You can read more about Zumo’s decarbonisation research and contribution to industry guidance here.

2. Transparent clean energy procurement

• Unlike traditional carbon offsetting products, Zumo’s solution directly addresses the electricity consumption of BTC investing in a transparent and quantifiable way.
• Zumo works with carefully selected trusted partners including ZeroLabs who are experts in the field of renewable energy procurement.
• The solution quantifies the electricity consumption attributable to the fund’s bitcoin holdings and transactions, and purchases equivalent Renewable Energy Certificates (RECs) on the blockchain. RECs are the standardised instrument for procuring clean power.
• The result is transparent, verifiable, ESG-aligned fund which qualifies as a SFDR Article 8.

Emanuel van Praag, lawyer at Kennedy Van der Laan, commented: “We are proud to have provided legal counsel to Jacobi AM in its listing of the first SFDR Article 8 digital assets fund.”

The result: a transformative moment for the industry

The launch of the Jacobi FT Wilshire Bitcoin ETF represents a watershed moment in the world of digital asset investing. By providing a transparent and verifiable solution to the environmental challenges associated with Bitcoin investing, Jacobi has set a new standard in the industry powered by Zumo.

How Zumo can help you

Zumo is at the forefront of ESG-aligned digital asset innovation. If you’re an asset manager interested in exploring how to create digital asset funds that are in alignment with environmental and social responsibility, we have the expertise, technology, and partnerships to guide you through the process.

• Tailored solutions: we can work with you to design a strategy that meets your specific ESG goals.
• Collaboration with industry experts: benefit from our established relationships with leading technology and tokenised ESG asset marketplace providers.
• Transparency: our approach ensures that your product will stand up to scrutiny.

Conclusion

The collaboration between Zumo and Jacobi Asset Management showcases how innovation and environmental stewardship can go hand in hand. By working closely with our partners, we’ve created a model that other asset managers can follow to offer environmentally responsible digital asset investment products.

Interested in creating ESG-aligned Spot Bitcoin ETFs?

Contact us today to explore how Zumo can help you shape the investment products of tomorrow.