Jacobi Asset Management’s Bitcoin exchange-traded fund (ETF) is set to finally debut in Europe after a year-long delay. Originally planned for a July 2022 listing on the Euronext Amsterdam exchange, the ETF launch was postponed due to market volatility caused by the collapse of the Terra ecosystem in May 2022 and the FTX collapse in November of the same year.
The London-based multi-asset investment platform has now announced that the time is right to launch the ETF, citing a shift in demand compared to 2022. While an exact date for the launch has not been shared yet, Jacobi Asset Management stated that it is currently assessing the situation.
The Jacobi Bitcoin ETF is noteworthy as it is Europe’s first spot Bitcoin ETF and differs from previous digital asset exchange-traded products in the region, which were structured as exchange-traded notes (ETNs). Unlike ETNs, the ETF grants shareholders ownership of a portion of the fund’s underlying Bitcoin assets, while ETN investors hold debt securities. Additionally, the Jacobi Bitcoin ETF does not allow leverage or the use of derivatives to mitigate market manipulation risks.
Europe’s approval of its first spot Bitcoin ETF in October 2021 stands in contrast to the United States Securities and Exchange Commission’s (SEC) rejections of spot Bitcoin ETFs thus far. However, in 2023, several institutional giants, including BlackRock and Fidelity, have filed fresh applications for spot Bitcoin ETFs in the United States, aiming to secure the first SEC approval. The SEC had already approved a couple of futures Bitcoin ETFs in 2021.
Read other Bitcoin ETF related stories:
- BlackRock Bitcoin Spot ETF: Why is it a Big thing for Crypto Investors?
- Fidelity Resubmits Application for Bitcoin ETF, Joining BlackRock and Others in Race for Approval
- Invesco Reapplies for Bitcoin ETF, Advocates for More Crypto Investment Products
The upcoming launch of Jacobi Asset Management’s Bitcoin ETF signals a growing interest in regulated cryptocurrency investment products in Europe and the United States. Investors and industry observers are eager to see how these ETFs will perform and their potential impact on the broader cryptocurrency market.