Europe's First Spot Bitcoin ETF Set to Debut in 2023 Following Year-Long Delay
Having obtained approval from the Guernsey financial regulator in October 2021, Jacob Asset Management was scheduled to make its debut on the Euronext Amsterdam Exchange in July 2022.
Because Bitcoin
July 13, 2023
Cointelegraph reported that after facing significant delays, Europe's inaugural Bitcoin exchange-traded fund (ETF) is poised to launch later this year. The London-based multi-asset investment platform, Jacobi Asset Management, had originally planned to introduce the Bitcoin ETF on the Euronext Amsterdam exchange in July 2022. However, unexpected market conditions resulting from the collapse of the Terra ecosystem in May 2022 and the subsequent FTX collapse prompted the asset manager to postpone the listing. Having obtained approval from the Guernsey Financial Services Commission (GFSC) in October 2021, Jacobi Asset Management has now decided to proceed with the ETF launch due to observed changes in demand compared to the previous year. While the asset manager is still evaluating the specific launch date, it intends to share this information in due course.
The Jacobi Bitcoin ETF stands out as a crypto-backed financial instrument with centralized clearing and custody support from Fidelity Digital Assets, a departure from the customary exchange-traded notes (ETNs) used for similar crypto-backed traditional financial instruments in Europe. Notably, ETN investors hold debt securities, whereas ETF shareholders own a portion of the underlying assets of the fund. Unlike ETNs, ETFs are not leveraged and do not employ derivatives, thereby reducing the potential risks associated with market manipulation.
While Europe successfully authorized its inaugural spot Bitcoin ETF in October 2021, the United States Securities and Exchange Commission (SEC) has thus far rejected all proposals for similar ETFs.
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