Europe Plans Launch of First Spot BTC ETF After Delay


The Bitcoin (BTC) Exchange Traded Fund (ETF) fever seems to have caught up with Europe as the first spot BTC ETF is set to debut later this year. This comes after 12 long months of delay from the planned launch. 

Jacobi Asset Management Postponed ETF Launch

After receiving approval from the Guernsey Financial Services Commission (GFSC) in October 2021, to launch its Bitcoin ETF, London-based multi-asset investment platform Jacobi Asset Management prepared to launch its Bitcoin ETF on the Euronext Amsterdam exchange in July 2022.

This was around the same time when the broad crypto market was riled up by the collapse of the Terra LUNA ecosystem and multiple bankruptcies of crypto exchanges which includes Celsius Network, Three Arrows Capital, BlockFi, FTX and a host of others. 

According to the platform, it didn’t look like a good time for the ETF offering, hence, the decision to postpone. However, one year later and it looks like it is ”on track” to launch this month.

BlackRock And Others File For Spot BTC ETF

There has been a deafening buzz about Bitcoin ETFs in the last four weeks. Popular investment asset management firm BlackRock applied to the Securities and Exchange Commission (SEC) for permission to list spot BTC ETF. 

The investment giant with over $9.5 trillion in assets under management (AUM) planned to engage Coinbase Custody for the ETF while also using the crypto exchange’s spot market data for pricing.

Other institutional investors like Fidelity Investments, Valkyrie, Invesco, WisdomTree, and Bitwise have equally submitted an application for a similar offering. The sudden crypto rally is believed to have been contributed by the impeccable reputation, status and size of BlackRock. Many firms suggested that BlackRock’s filing brought a renewal of hope in the sector.

Possible Challenge For Europe ETF

As Europe prepares for its first spot BTC ETF launch, Michael O’Riordan, the founding partner of ETF and digital assets consultancy Blackwater Search and Advisory, has highlighted that launching a BTC ETF in Europe would be very challenging. He cited that Bitcoin is not considered as an eligible asset under UCITS rules.

Noteworthy, in Europe, digital asset exchange-traded products (ETPs) are designed to be more as exchange-traded notes (ETNs) instead of funds. Now, Jacobi Asset Management has made a point of launching an ETF instead of an ETN.

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