Europe is eagerly anticipating the launch of it’s first-ever Bitcoin exchange-traded fund (ETF), marking a significant milestone in the region’s cryptocurrency market. The London-based multi-asset investment platform, Jacobi Asset Management, is the driving force behind this ground-breaking ETF, which is slated to debut later this year. Originally scheduled for a July 2022 release on the Euronext Amsterdam exchange, the listing had to be delayed due to unforeseen circumstances.
The setbacks were triggered by the tumultuous market conditions caused by the collapse of the Terra ecosystem in May 2022 and the subsequent collapse of FTX in November. These unprecedented events forced Jacobi Asset Management to exercise caution and prudently postpone the ETF listing. However, with the gradual shift in demand observed since 2022, the asset manager has decided that now is the opportune time to introduce the ETF to the market.
Obtaining approval from the Guernsey Financial Services Commission (GFSC) in October 2021, Jacobi Asset Management has diligently paved the way for the Bitcoin ETF. As the launch draws near, the asset manager remains cautious and is currently evaluating the optimal date for the debut, which will be shared with the public in due course.
Distinguished by its unique characteristics, the Jacobi Bitcoin ETF stands out as a centrally cleared crypto-backed financial instrument with custody support from Fidelity Digital Assets. This innovative approach represents a notable departure from the conventional exchange-traded notes (ETNs) prevalent in the European market.
Traditionally, crypto-backed financial instruments in Europe were structured as ETNs rather than funds. The key distinction between an ETN and an ETF lies in ownership: ETF shareholders hold a stake in the underlying assets of the fund, while ETN investors own debt securities. ETFs offer a more secure investment option as they cannot be leveraged or employ derivatives, effectively mitigating potential risks associated with market manipulation.
As Europe’s first spot Bitcoin ETF, the Jacobi Bitcoin ETF is poised to revolutionize the region’s cryptocurrency investment landscape. Its forthcoming debut is highly anticipated, promising to provide investors with a regulated and secure pathway to gain exposure to Bitcoin within a traditional financial framework.
Get $200 Free Bitcoins every hour! No Deposit No Credit Card required. Sign Up