Europe’s First Spot Bitcoin ETF Aims for 2023 Launch Following Significant Delay

Europe’s eagerly awaited spot Bitcoin exchange-traded fund (ETF) is finally slated to make its debut later this year, following a lengthy delay. Originally scheduled to launch on the Euronext Amsterdam exchange in July 2022, the Bitcoin ETF by Jacobi Asset Management, a London-based multi-asset investment platform, faced postponement due to extraordinary market circumstances.

The collapse of the Terra ecosystem in May 2022 and the subsequent FTX collapse in November created unprecedented market conditions, compelling the asset manager to push back the listing. Despite obtaining approval from the Guernsey Financial Services Commission (GFSC) in October 2021, Jacobi Asset Management had to reevaluate its plans.

According to the asset manager, there has been a noticeable shift in demand compared to the previous year, prompting the decision to proceed with the ETF launch. While the precise date is yet to be announced, the asset manager stated that it is currently assessing the launch process.

The Jacobi Bitcoin ETF stands apart from the norm as a centrally cleared crypto-backed financial instrument with custody support from Fidelity Digital Assets. This differs from the traditional structure of exchange-traded notes (ETNs) that have been prevalent for crypto-backed financial products in Europe.

The key distinction between ETNs and ETFs lies in ownership. ETF shareholders possess a stake in the underlying assets of the fund, while ETN investors hold a debt security. ETFs are not leveraged and do not employ derivatives, mitigating potential risks associated with market manipulation.

While Europe celebrated the approval of its first spot Bitcoin ETF in October 2021, the United States Securities and Exchange Commission (SEC) has consistently rejected similar proposals. However, in 2023, several institutional giants, including BlackRock and Fidelity, have submitted fresh spot Bitcoin ETF applications in hopes of becoming the first SEC-approved spot BTC ETF. The SEC had already granted approval for a couple of futures Bitcoin ETFs in 2021.

For more news, find me on Twitter or subscribe to my YouTube channel.

What is your opinion on this issue? Leave me your comment below! I’m always interested in your opinion!

Leave a Reply

Your email address will not be published. Required fields are marked *

Recommended for you