Jacobi Asset Management has announced that Europe’s first Bitcoin exchange-traded fund (ETF) will soon be listed on Euronext Amsterdam. This news comes after a series of delays caused by market conditions and regulatory hurdles. According to the latest report, initially planned for launch in July 2022, the ETF’s release was postponed due to the Terra Luna cryptocurrency crash in May 2022 and the collapse of crypto exchange FTX in November of the same year.
Bitcoin ETF Set For Launch After Market Conditions Improve
However, Jacobi Asset Management now confirms that the fund is on track for launch this month. The asset manager believes that the demand for Bitcoin ETFs has shifted significantly since last summer, prompting them to proceed with the listing. Notably, this ETF distinguishes itself from existing digital asset exchange-traded products (ETPs) in Europe by being structured as an ETF rather than an exchange-traded note (ETN).
While ETPs are based on debt securities, ETFs provide investors with direct ownership of the underlying assets. In this case, each shareholder of the Bitcoin ETF will own a portion of the fund’s underlying BTC shares. Jacobi emphasizes that their ETF cannot be leveraged or use derivatives, thereby mitigating potential counterparty risks.
To facilitate the launch of the Bitcoin ETF, Jacobi has obtained authorization in Guernsey, a jurisdiction offering favorable conditions for fund servicing. Guernsey’s flexibility and understanding of complex regulatory details have enabled the quick adaptation required for this innovative fund vehicle. The move to launch the Bitcoin ETF in Guernsey demonstrates the jurisdiction’s ability to support novel investment opportunities.
Launching a Bitcoin ETF in Europe presents substantial regulatory challenges, as BTC is not considered an eligible asset under Ucits rules. Michael O’Riordan, a founding partner at Blackwater Search and Advisory, acknowledges the structural similarities between ETFs and ETPs, highlighting the industry’s failure to differentiate between the two clearly.
This lack of distinction has led to confusion among market participants. Nevertheless, investors eagerly anticipate the new investment vehicle that offers direct ownership of Bitcoin shares as Jacobi Asset Management prepares to launch Europe’s first Bitcoin ETF.
Related Reading | 3 Hidden Gems: Discover the Potential of Tradecurve (TCRV), Helium (HNT), and Dash (DASH)