Europe already introduced its comprehensive crypto law and now it also listed its first Bitcoin ETF, beating the US once more.
Europe’s First Spot Bitcoin ETF
Jacobi Asset Management has successfully launched Europe’s very first spot Bitcoin Exchange-Traded Fund (ETF) on Euronext Amsterdam. This move comes after over a year of waiting since its initial planned launch. The ETF operates under the ticker symbol BCOIN and is regulated by the Guernsey Financial Services Commission (GFSC). Key partners for this ETF include Fidelity Digital Assets for custodial services, Flow Traders as market makers, and Jane Street and DRW as Authorized Participants. The benchmark used for this fund is the FT Wilshire Bitcoin Blended Price Index, provided by Wilshire Indexes.
Europe’s first spot #BitcoinETF hits Amsterdam’s market! 🚀 pic.twitter.com/rV8JMLnK3i
— CryptoSavingExpert ® (@CryptoSavingExp) August 15, 2023
Exciting Development for European Investors
Martin Bednall, the CEO of Jacobi Asset Management, expressed enthusiasm about Europe taking the lead in making Bitcoin investment accessible for institutional investors through a regulated structure like their ETF. Unlike other products in the European market, which are debt instruments, their fund directly owns the underlying Bitcoin asset. This innovative approach combines pioneering the digital asset market while addressing environmental concerns.
Contrast with the US
While Europe is moving forward with its first spot Bitcoin ETF, the United States continues to delay the approval of a similar product. The SEC’s decision to postpone Cathie Wood’s ARK Invest spot Bitcoin ETF application once again has left many investors wondering when such an ETF will be approved. The SEC’s delays have set new deadlines for Bitcoin ETF approvals, extending the waiting period until early 2024.
Challenges and Renewed Interest in the US
The United States Securities and Exchange Commission (SEC) has the authority to delay crypto ETF applications for up to 240 days, opening them to public comment. This delay has been a hurdle for various firms seeking approval for spot Bitcoin ETFs. Despite the challenges, renewed interest in crypto ETFs has been sparked by significant players like BlackRock and ARK Invest entering the field. BlackRock’s application and its “surveillance-sharing agreement” with Coinbase reflect a potential shift in the SEC’s stance.
BREAKING:
SEC delays all Bitcoin ETF decision until 2024
— Whale (@WhaleChart) August 15, 2023
Spot vs. Futures Bitcoin ETFs
While spot Bitcoin ETFs directly hold Bitcoin, allowing investors to gain exposure to its price without directly buying the cryptocurrency, futures-based Bitcoin ETFs focus on the futures market. This difference in approach carries distinct challenges and risks. The US has approved futures-based Bitcoin ETFs, but spot Bitcoin ETF proposals have faced rejection due to concerns about market manipulation and inadequate trading surveillance.
Summary
Europe’s launch of the first spot Bitcoin ETF represents a significant step in the digital asset industry. It highlights the divergence between Europe and the US in making Bitcoin investment accessible to institutional investors. As regulatory landscapes evolve and market players adapt, the potential for wider acceptance of crypto ETFs remains a topic of interest for investors globally.
