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While it’s certainly been a turbulent year for bitcoin, there’s seemingly nothing capable of standing in the cryptocurrency’s way when it comes to building momentum towards mainstream acceptance. With the news that a spot bitcoin ETF is set to land in Europe this summer, European investors will have unprecedented access to BTC on traditional markets. 

In July, Europe’s first spot bitcoin exchange-traded fund will arrive on the Euronext Amsterdam, which is a major stock exchange and part of the pan-European marketplace, Euronext.

The ETF is to be launched by London-based digital asset management platform, Jacobi Asset Management, and the fund will start trading in the Dutch capital under the ticker BCOIN. The move is set to give European institutional and retail investors alike the opportunity to invest in bitcoin and the cryptocurrency market via the ETF for a 1.5% annual management fee. 

“Our product is the first spot or physical-backed Bitcoin fund, and the fund is not allowed to lend, stake or leverage any of the assets it owns,” said Jamie Khurshid, CEO of Jacobi Asset Management, in an interview with Cointelegraph. “For the first time in Europe, investors buying an exchange-traded Bitcoin product will own the units that own the Bitcoin. There are other exchange-traded products in Europe but no other spot BTC ETF.”

The arrival of a spot bitcoin ETF comes at a time when markets are reeling from a cocktail of factors like high inflation rates, the war in Ukraine and further COVID-19 complications. Using the S&P 500 as an example, we can see that leading cryptocurrencies like bitcoin and ethereum are down by a significantly larger margin than traditional markets. However, for many investors, this deeper level of volatility presents an attractive opportunity to find larger profit margins. Now, for the first time, we have sufficient BTC coverage in Europe, we may see more investors looking to catch bitcoin’s bottom price ahead of a prospective recovery.

“This will be the first Bitcoin ETF on Euronext, or the first fund directly investing in Bitcoin. All other currently existing products on our segment are exchange-traded notes, or legally structured as debt instruments,” Stephane Boujnah, CEO of Euronext, said in a statement. 

Despite uncertain market conditions, history suggests that the timing of the Jacobi Bitcoin ETF may be a relatively good one when it hits European markets. With bitcoin operating at close to its historical bottom value following its post-halving bull cycles, it could be an excellent opportunity for investors to buy into the asset for investors who are optimistic about BTC’s future cyclical rallies.

Paving the way for Accessibility

The arrival of Europe’s first spot ETF is an excellent step for cryptocurrency accessibility in Europe. For investors who would prefer to retain their portfolios on more traditionally aligned stock exchanges, buying into a bitcoin exchange-traded fund can offer the same level of growth that cryptocurrencies are capable of without having to throw themselves into the unfamiliar world of crypto. 

According to Edd Carlton, who is a digital asset trader at Flow Traders, the listing of a spot bitcoin ETF is “aligned with the growing demand from institutional investors.” Carlton also noted that calls for a spot Bitcoin ETF have been made in the United States for many years.

Despite this, so far the only spot ETFs to be launched globally are based in Canada, Brazil and Jersey, and are considerably smaller in scale than many U.S. ETFs. This means that the arrival of the Jacobi Bitcoin ETF will be the biggest of its kind in the world. 

Although European ETF investing is far less developed than in the U.S., the accommodation of cryptocurrencies in a more traditional investing format is likely to be a popular move on the continent. At present, only around 15 to 20 percent of retail investors in Europe use ETFs, as opposed to around 40% of U.S. investors. While this means that there’s considerably lower trading volumes surrounding exchange-traded funds in Europe, it also means that the Jacobi Bitcoin ETF has been viewed as an opportunity to breathe new life into the market by the European Commission. 

By accommodating a spot bitcoin ETF in Europe, it’s now possible for institutions like insurance companies, mutual funds and pension funds alike to develop their exposure to bitcoin in a way that was previously impossible. Likewise, retail investors in Europe can look to stock trading platforms that incorporate ETFs as its core offering for access to crypto on a scale like never before. 

Although the market surrounding cryptocurrencies has suffered a turbulent start to 2022, the arrival of the Jacobi Bitcoin ETF is likely to see plenty of traffic once a recovery begins. For Europe as a whole, the continent’s first spot bitcoin exchange-traded fund is a bold step towards widespread crypto acceptance. 

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Need help navigating the digital asset learning curve? Get our practical and tech-focused advice here.

Welcome back to our digital asset blog post series, brought to you by securities compliance consulting firm Joot and MeetAmi Innovations, Canada’s leading wealth management platform providing access to digital asset investing and learning. The first post in our content partnership explored the opportunities and challenges related to digital asset adoption for investment advisory firms. In this post, we dive deeper into relevant compliance considerations and issues around technology integration as you weigh the pros and cons of digital asset adoption.

To start, let’s discuss the value of continuing education in this space.

How Does Technology Function as a Teaching and Learning Tool?

When it comes to continuing education, investment advisory firms have a dual purpose: to foster ongoing professional development and to guide clients on digital asset allocation in their portfolios. This learning process includes, among other things, understanding how

Coupled with a short- and long-term investment plan, continuing education helps ensure compliance is in sync with business and industry changes. Bo Howell, CEO of Joot and managing director of FinTech Law, recently gave a Cincinnati Bar Association Continuing Legal Education presentation titled “Building Blocks of Crypto.” This webinar provided background information on blockchain technology and sparked audience participation to weigh in on the future of this and other emerging technologies. Bo offered this advice to investment advisors and fund managers interested in developing crypto investment products: “Learn. Learn. Learn. RIAs and fund managers can’t simply chase another hot investment product. They need to have a working knowledge of how the underlying technology works, the risks to that technology (e.g., a blockchain fork or pending upgrade to the protocol), and the property rights attached to digital assets.” Ongoing education in this rapidly evolving space is crucial for industry participants to stay involved—and compliant.

Where’s the Disconnect?

Much of the digital asset movement has been built for and adopted by consumers for self-management, whereas advisors need tools to bulk-manage accounts and report into traditional systems. With over 300 million crypto users (a number forecasted to reach a billion by the end of 2022), 400+ global exchanges, and self-directed learning, the digital assets environment has traditionally been consumer-focused, and “all over the place.” Advisors need to be empowered to engage with digital assets on behalf of their clients. That empowerment comes from continuous learning and education, support, and simulated market interaction in a compliant, easily learned ecosystem.

AmiLearn is a new learning model for wealth advisors seeking proficiency in this new asset class. The platform consists of small bites, curated news, master classes, and communities of practice—all ledgered on the blockchain. The platform was designed to support this intense, ever-changing learning curve.

Educating Advisors on Key Fiduciary Obligations

Technology will serve a key function in educating advisors on new fiduciary obligations, including know-your-customer (KYC) standards as well as taxation, custody, and insurance issues. As local, federal, and global rules, regulations, and entire regulatory bodies are still being developed and understood, advisors need to stay updated on regulatory developments to meet their fiduciary duty and to effectively manage digital assets. Regular exposure to breaking news, legal precedents (both national and international), tech advancements, and developing projects is paramount for advisors as they implement risk management strategies.

Two other areas that frequently trip-up product sponsors are anti-money laundering (AML) regulation and cybersecurity requirements needed to protect assets. These regulatory issues must be considered before investment advisors and fund managers develop and launch a product or invest client assets in cryptocurrencies and other digital assets. Many still consider cryptocurrencies to be nothing more than an anonymous method of transacting illegal money, though that myth has been disproven thanks to tracing techniques and wallet transparency. Cybersecurity issues mostly arise in the transition from decentralized platforms (blockchains) to traditional finance systems or transactions between separate blockchains. The very nature of decentralizing lends itself to more secure networks of nodes. Advisors and their firms must consult with cybersecurity experts who specifically focus on the application at hand.

The Path Forward

The influence of technology in understanding and learning about digital assets cannot be understated. In a digital world that relies on cryptography, decentralization, international cooperation, transparency, and a plethora of cutting-edge technologies, traditional learning methods simply cannot keep pace with—or fully express—a true understanding of the digital asset ecosystem.

Stay tuned for more, relevant content in our digital asset series. In the meantime, reach out to MeetAmi and Joot with any questions or feedback. We’d love to hear from you.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

No bosses. No 9-5 grind. No corporate bureaucracy. Limitless potential for growth. This is the lure of DAOs, or decentralized autonomous organizations, which many in the Web3 space view as the “future of work.”

At a DAO, instead of toiling away as a cog in the corporate wheel, you can unleash your inner entrepreneur and contribute as much or little as you’d like. You can work at one DAO or you can work at 10 DAOs. Maybe you choose to work 12-hour days for a month, save up some cash and then spend your summer kayaking the Sea of Cortez. You’re in full control.

This article is part of CoinDesk’s Future of Work Week.

Kind of.

It’s true that all of this sounds alluring, but it’s also true that it’s hopelessly opaque. How do you actually make money at a DAO? How do you cobble together work? What types of gigs are out there?

To bridge us from the abstract to the concrete, I spoke with a full-time DAO worker who goes by T Wells, a 30-something former educator who, in 2021, began hunting for “bounties” in the DAO ecosystem. Bounties are basically gig postings. If a DAO needs to create a logo, they might post a bounty and quickly find a talented designer.

T Wells became good at bounties. He enjoyed it. In his “real world” job in education tech and curriculum development, his skills ranged from writing to graphic design to producing videos. “To be an effective educator, you have to be a Swiss Army knife,” says T Wells. “It’s just the way it is. Educators are often underestimated.”

So he put those skills to work at the DAOs, first knocking out bounties for 1Hive, and later contributing to DAOs like ShapeShift and Gnosis. These bounties started to add up. He built relationships with the DAOs and they gave him more work. He pitched his own projects. The DAO-work went so well that he quit his job in education. Even now, after crypto prices tumbled, T Wells is bullish on his DAO work. “There’s just a lot of opportunity,” says T Wells, “And a lot of really enthusiastic people that are sincere about building a better future.”

This is how he did it.

Interview has been condensed and lightly edited for clarity.

How’d you first start making money at a DAO?

T Wells: I took my first bounty in early 2021. One of the nice things about this space is the ease of access. If you find a task that needs doing and you have the skill set that matches up with it and you have a set of basic pre-existing relationships with people in that DAO, it’s very easy to get started.

Walk us through the mechanics. How does it work?

Coming into the DAO of 1Hive, they have great community moderators and people who are going to welcome you and ask you questions. Maybe they help figure out where you might fit best.

So in my case, because I was working in education, I paired up with a couple of the communications folks. And there was some low-hanging fruit, like writing articles and doing banner design. It was an easy way to get involved and be a part of what’s happening. Plus I can get compensated in some crypto and develop a sense of ownership and belonging in the community.

Is that when you found the bounty list? What does it look like?

You’ll typically see a list of projects that has three columns: Not Started, In Progress and Finished. That’s the generic example.

With 1Hive, they pointed me to the bounty list and said, “Okay, so these are the ones we need to do. They’re not started yet. Is there anything you think you could tackle?” And then they asked for a few samples of work. And then it was sort of off to the races.

What was on that bounty list? Just a few examples?

They needed Medium articles to be written, banners, Twitter copy, videos to be made. One of the very first bounties I did was a very short tutorial video explaining the “Connext Bridge.” So it could be as simple as a tutorial video. [The Connext Bridge is a way of “transferring assets from Matic to xDai (now Gnosis) powered by Connext.” If that still sounds like gobblylook, you can watch T Well’s tutorial.]

What does bounty work pay? And how does it stack up to comparable work in the Web2 world?

When I first began, I was working full time elsewhere. So it was less about, “Oh, it’s a competitive rate,” and more about the interesting opportunity. And for most people I know who are working full time in the DAO space now, they had also had that phase where it was first a side hustle. But that means the rates are competitive, right? Or, ultimately, you wouldn’t be able to make that transition to full time if they weren’t.

Makes sense. What’s a concrete example?

So I think there was a short video under two minutes, and I think that paid around $350 or $400. And I was somewhat of an unknown quantity at the time, right?

Scaling it up, to give you another example, from a larger DAO, a sort of longer-form video would be closer to $1,500.

That’s real money.

For sure. And I mean, some DAOs are serious about trying to attract talent, and they know that it needs to be incentivized.

So you were doing a mix of videos, blog posts, banner designs. What would a banner design pay?

Yeah, it would be less than $100, right? It’s been a while since I’ve done those.

Got it. What was the next step for you? Did you just keep banging out more bounties?

On the video side, for example, I think once I had some success doing that, it became less about, “When’s the next video bounty?” and more about, if we need a video done, they would tend to default to people who had done the bounty successfully. There were more opportunities for me, and a direct line of work with the 1Hive DAO. I think that’s likely the case for all kinds of work, right?

Right. You start with bounties almost as a cold freelancer, and then you build relationships.

Exactly. The bounty is typically the place where a lot of people get their foot in the door and then develop deeper relationships and contributions with the organization.

So how did you contribute in a deeper way?

If you’re the kind of person who’s looking for new ways to contribute, and you’ve built a track record, then typically the door is open at certain DAOs for you to propose more things that you can do.

You pitched them a new scope of work? What happened in your case?

Yeah. This was [the fourth quarter] of last year. I was fortunate enough to have a good group of folks at 1Hive that I was working with, and they wanted to make a push for more content on YouTube, some live content.

So, we spun up essentially a sub-DAO. And I’ve been helping to run a sub-DAO on the communications side for 1Hive. This led to new opportunities to do more PM [project management].

How did that pitching process work? Is it like the Web3 version of Don Draper [of “Mad Men”] putting together a pitch deck? How’d you sell it?

[Laughs.] Well, the more you consider this stuff, the human element is never removed. The starting point has to be the relationships in the organization. You see it at 1Hive and elsewhere.

A proposal will show up on the Forum [the platform where proposals are voted on], and it was never really discussed in the Discord. Well, what happens to the post? Most likely, it doesn’t get a whole lot of attention.

You mean that if some “rando” just pitches something out of the blue and asks for a vote – without socializing the concept – it’s less likely to be green-lit?

The key point here is that the relationships within the DAO are the right starting point, and the best way to establish those relationships, I think, is doing great bounty work. That’s the place to start.

When was your inflection point? When did DAO work go from being a side hustle to your main source of income?

The moment I had the approval of the 1Hive community to move forward with the communications project as more of a PM was the point where I was, like, “Ok, now we have runway, and now we have the resources to make this possible.”

Backing up a bit: Overall, how would you say that DAO work compares to your old life where you had a full-time job?

The trade-offs really are the differences between freelancing and being employed. You have greater freedom but less predictability.

I certainly wouldn’t say it’s for everyone, but I think that for people who are already inclined to freelance work and have an entrepreneurial spirit and are willing to engage with people and are interested in learning new things there’s a lot of interesting opportunities, even on the non-technical side.

How about some other non-tech examples? You mentioned blog posts, banner ads and video. Any others?

Any type of communications work. People are looking for social media managers. They’re looking for folks who are keen on business development. Even the sort of internal communications side – ensuring there is smooth communication and clarity between the technical people and the non-technical people. I mean, DAOs need that connective tissue just like any other organization.

How does your overall compensation compare to your pre-DAO life?

Month to month it’s different because you’re not salaried. So that’s probably more akin to freelancing. But at the end of the day, I think the average is more or less the same.

How do you get paid? In tokens native to the DAO? Bitcoin? Fiat?

Well, the vast majority, if not all, of the bounty work that I did initially through 1Hive was all paid out in the token of the DAO. There are other cases where a DAO is able to pay in stablecoins. Those are typically bigger DAOs that have active treasury management and the like.

Obviously the crypto markets have been bloody. How has that impacted DAO work?

I’d be lying if I said nothing had changed. I think everybody is taking a close look at their resources and how they’re going to allocate them. And so it’s certainly a bit more challenging now. But I think people who spent time to build good relationships – and really work to provide genuine value – will make it. The serious people who are in this for the long haul are here now, and they’re not going anywhere.

How would you say this is different from your normal life?

I feel like I have more control over what I’m putting my time into. And that’s empowering. And the people I work with are a huge part of that; we’re all trying to build things together, rather than deferring to people above us in a hierarchy. So that’s a super-empowering feeling.

More from Future of Work Week

The Crypto Jobs Boom

It may be a bear market, but there are still plenty of jobs to be had at crypto companies.

‘We’re Freaking DAOing It’: The People Who Think DAOs Are the Future of Work

Meet the pioneers who work at decentralized autonomous organizations.

Chase Chapman on DAOs and Professional Polyamory

It may be a bear market, but there are still plenty of jobs to be had at crypto companies.

Payroll, Web3 and the $62B Opportunity

Crypto can make it faster and cheaper to pay workers.

You’re Hiring Wrong: Do It More Like Web3

By adopting a more open, fluid model, traditional firms would find it easier to attract talent and end up with a more passionate, engaged workforce.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.