Europe Set to Launch First Bitcoin ETF After Year-Long Delay

NEW DELHI (CoinChapter.com) — After facing a significant delay of 12 months, Jacobi Asset Management has announced that Europe’s first Bitcoin Exchange-Traded Fund (ETF) is finally set to go live in July on Euronext Amsterdam under the ticker symbol BCOIN.

The highly anticipated launch was originally scheduled for July 2022 but was postponed due to unfavorable market conditions. However, with the crypto landscape showing signs of recovery, the asset manager is confident that now is the right time to introduce the investment vehicle.

The tumultuous state of the cryptocurrency ecosystem influenced the decision to delay the launch last year. That includes the collapse of entities such as Three Arrows Capital, Terraform Labs, and FTX. However, the asset manager emphasized that there has been a notable shift in demand since then, which has prompted them to proceed with the ETF launch.

What is the EU’s First Bitcoin ETF About?

Jacobi’s Bitcoin ETF aims to expose investors to Bitcoin through a well-established investment structure.

It should be noted that several crypto-equity-related ETFs have already been launched in Europe. For instance, Melanion Capital recently introduced its Bitcoin Equities ETF, which tracks the performance of various companies involved in the cryptocurrency industry.

This ETF focuses on stocks of mining operations, Bitcoin holdings, and exchanges, including notable names like MicroStrategy, Coinbase, Robinhood, Marathon Digital, Riot, and Hut8.

Jacobi’s Bitcoin ETF is the exclusion of leverage and derivatives. The Financial Times reported that most digital asset exchange-traded European products are structured as exchange-traded notes (ETNs), where investors hold debt securities rather than actual assets.

Jacobi clarified that its investment vehicle is an ETF, not an ETN, and cannot utilize derivatives or be leveraged.

“There has been so much misinformation and misuse of the term ETF by [ETN] issuers, presumably to obfuscate the risks inherent in acquiring and investing in ETNs.” 

Jacobi highlighted.

As the launch date approaches, investors and industry experts eagerly await the debut of Europe’s first Bitcoin ETF, anticipating its potential impact on the crypto market and the broader financial landscape.