The first bitcoin ETF will appear in Europe
Date: 2023-07-14 Author: Karina Ziganova Categories: BLOCKCHAIN, IN WORLD
The first bitcoin ETF will appear in Europe this month after a 12-month delay, writes the Financial Times.
Jacobi Asset Management, the firm behind the ETF, originally planned to launch it on Euronext Amsterdam in July 2022. However, due to concerns related to the collapse of the Terra Luna cryptocurrency in May 2022 and the collapse of the FTX cryptocurrency exchange in November, the launch was postponed.
The asset manager told the Financial Times that he decided to launch the ETF now because there is a gradual change in demand compared to 2022. The Jacobi Bitcoin ETF will be a centrally cleared, crypto-backed financial instrument with custody backed by Fidelity Digital Assets.
Europe is overtaking the U.S.
While Europe approved its first spot bitcoin ETF in October 2021, the U.S. Securities and Exchange Commission (SEC) has rejected all applications to date. However, financial giants, including BlackRock and Fidelity, have re-applied for spot bitcoin ETFs.
On June 15, investment giant BlackRock applied to launch a spot bitcoin ETF called iSHARES BITCOIN TRUST. BlackRock's initiative has led to a wave of similar applications to launch a spot bitcoin ETF. Following the investment giant, Bitwise Asset Management and WisdomTree, a well-known provider of services in the segment of ETFs and exchange-traded products, turned to the SEC.
How a Bitcoin ETF will change the rules of the game
The head of Galaxy Digital, Mike Novogratz, believes that if the Commission approves the application for a spot bitcoin ETF, it will greatly simplify access to the digital asset market for institutional capital. In addition, it will be the best event that can happen to Bitcoin.
Former SEC chief Jay Clayton also believes that the tool should be approved. According to him, it will be difficult for regulators to reject a spot bitcoin ETF if market participants who submit applications to the SEC to launch such a tool can demonstrate its effectiveness.
