Europe’s first Bitcoin (BTC) spot exchange traded fund (ETF) is set to launch later this year after a long delay. Jacobi Asset Management’s Bitcoin ETF – a London-based multi-asset investment platform – was scheduled to debut on the Euronext Amsterdam exchange in July 2022.
However, unprecedented market conditions caused by the collapse of the Terra ecosystem in May 2022 as well as the FTX collapse in November forced the asset manager to postpone the listing. The Jacobi Bitcoin ETF received approval from the Guernsey Financial Services Commission (GFSC) to launch its Bitcoin ETF in October 2021.
The asset manager told the Financial Times that it decided to launch the ETF now as demand has gradually shifted compared to 2022. The money manager told Cointelegraph that it is still evaluating the launch and will announce a date soon.
The Jacobi Bitcoin ETF is a centrally cleared crypto-backed financial instrument whose custody is powered by Fidelity Digital Assets, a major departure from the usual exchange-traded notes (ETNs). In Europe, all crypto-backed traditional financial instruments were structured as ETNs rather than funds.
The main difference between an ETN and an ETF is that the ETF shareholder owns a portion of the fund’s underlying assets, while ETN investors own debt securities. ETFs, unlike ETNs, cannot be leveraged or use derivatives, which could otherwise create market manipulation risks.
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While Europe approved its first spot bitcoin ETF in October 2021, the US Securities and Exchange Commission (SEC) has so far rejected all spot bitcoin ETFs. However, in 2023 alone, nearly half a dozen institutional giants, including BlackRock and Fidelity, submitted new spot Bitcoin ETF applications in hopes of becoming the first US-legal spot BTC ETF. The SEC had already approved a few futures bitcoin ETFs in 2021.
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