The European Union has made a Spot for the first time despite a 12-month delay. bitcoin He started preparing for his ETF.
In July 2022 last year, Jacobi Asset Management announced that its Bitcoin ETF would be listed on the Euronext Amsterdam stock exchange. But a year later, the platform announced it was “on track” to launch this month, adding that the timing wasn’t right last year.
The cryptocurrency market wasn’t having a good time a year ago. The collapse of the Terra ecosystem and major events such as the Three Arrows Capital triggered by this collapse had a very negative impact on the industry. However, when we came to 2023, the Spot ETF application of a financial giant like Blackrock intensified again. Jacobi Asset Management also admitted that “demand has changed since last summer.”
All digital asset exchange-traded products (ETPs) in Europe are structured as exchange-traded notes (ETNs) rather than funds.
ETFs are mutual funds that can be traded on an exchange, like stocks. ETF shareholders own a portion of the fund’s underlying assets. ETNs, on the other hand, are debt securities that track the price of an underlying asset, such as a digital currency. ETN investors do not own the underlying assets.
Jacobi Asset Management chose to issue an ETF rather than an ETN. This is because ETFs are more transparent and liquid than ETNs. So this means that there is a similar structure to the spot Bitcoin ETF in the US markets. The development came shortly after the SEC accepted Bitwise’s spot ETF application.
But Michael O’Riordan, co-founder of Blackwater Search, believes that launching an ETF in Europe will be a real challenge. This is because the asset is not considered an “eligible” asset under Ucits rules.
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