In October 2021, the Guernsey financial authority approved Jacob Asset Management, and in July 2022, it was scheduled to make its debut on the Euronext Amsterdam Exchange.
The first Bitcoin exchange-traded fund (ETF) in Europe is finally prepared to launch later this year after experiencing severe delays. The Bitcoin ETF, created by London-based Jacobi Asset Management, a multi-asset investment platform, was previously slated to debut on the Euronext Amsterdam exchange in July 2022.
The Terra ecosystem collapse in May 2022 and the subsequent collapse of FTX in November, however, forced the asset management to postpone the offering due to unanticipated market disruptions. Despite these difficulties, the Guernsey Financial Services Commission (GFSC) granted permission for the Jacobi Bitcoin ETF to debut in October 2021.
Jacobi Asset Management has chosen to move through with the ETF launch, citing a gradual shift in demand compared to 2022. The asset manager has stated that it is actively evaluating the matter and would give further details shortly, even if the precise date has not yet been disclosed.
Jacobi Bitcoin ETF Introduces Novel Approach with Custody by Fidelity Digital Assets
As a centrally cleared cryptocurrency-backed asset class, the Jacobi Bitcoin ETF stands out as a difference from the conventional exchange-traded notes (ETNs) generally found in the European market. The ETF’s custody is provided by Fidelity Digital Assets, a significant industry milestone, in a noticeable divergence from the norm.
In contrast to ETNs, which allow investors to hold debt instruments, shareholders of ETFs possess the fund’s underlying assets. Furthermore, ETFs forgo leverage and the use of derivatives, so reducing the possibility of market manipulation.
While the United States Securities and Exchange Commission (SEC) has so far denied every application for a spot Bitcoin ETF, Europe has advanced with the approval of its first spot Bitcoin ETF in October 2021.
However, a number of institutional juggernauts, such as BlackRock and Fidelity, have only submitted new applications for spot Bitcoin ETFs in 2023 in an effort to obtain the first U.S. regulatory approval. It’s important to remember that the SEC had already approved a few Bitcoin ETFs with futures in 2021.
The industry excitedly anticipates the evolution of the global ETF landscape as regulators and market participants negotiate the route toward broader acceptance and integration of digital assets into conventional investing frameworks with the impending launch of the Jacobi Bitcoin ETF in Europe.