After undergoing a significant delay, Europe is now on the brink of witnessing the public listing of its inaugural Bitcoin exchange-traded fund (ETF) later this month, marking a noteworthy 12-month gap since its originally intended launch.
The Bitcoin ETF, led by Jacobi Asset Management, a renowned multi-asset investment platform headquartered in London, was originally scheduled to be introduced on the Euronext Amsterdam Exchange with the ticker symbol BCOIN in July 2022.
The listing of the Jacobi Bitcoin ETF had to be postponed due to unexpected market conditions resulting from the collapse of the Terra-Luna ecosystem in May and the subsequent FTX collapse in November of the previous year. However, despite these challenges, the Jacobi Bitcoin ETF obtained approval from the Guernsey Financial Services Commission (GFSC) in October 2021, allowing it to move forward with the planned launch.
The asset manager, as reported by the Financial Times, has made the decision to proceed with the ETF based on their observation of a gradual shift in demand compared to the previous summer. They are currently in the process of evaluating the launch and plan to announce a specific date in the near future.
The Jacobi Bitcoin ETF stands out as a significant departure from the usual exchange-traded notes (ETNs) employed for crypto-backed financial instruments in Europe. It diverges by being a centrally cleared instrument with custody services offered by Fidelity Digital Assets, marking a noteworthy advancement within the market.
The primary distinction between an exchange-traded note (ETN) and an exchange-traded fund (ETF) lies in the ownership structure. ETF shareholders possess a stake in the fund’s underlying assets, whereas ETN investors hold debt security.
In contrast to Europe, where the first spot Bitcoin ETF received approval in October, the United States Securities and Exchange Commission (SEC) has thus far rejected all spot Bitcoin ETF proposals. Nonetheless, in 2023, several major institutional players, including prominent names such as Blackrock and Fidelity, have submitted new applications for spot Bitcoin ETFs, aspiring to secure the first approved spot BTC ETF in the United States.
Also read: Coinbase The Surveillance Partner In BlackRock’s Bitcoin ETF
