Jacobi Asset Management is set to launch Europe’s first Bitcoin exchange-traded fund (ETF). According to the Financial Times, the asset manager stated that the fund is on track to be launched in July 2023.
Jacobi initially planned to list the Bitcoin ETF on Euronext Amsterdam in July 2022. However, due to unforeseen market conditions, including the collapse of the Terra-Luna ecosystem in May 2022 and also the FTX collapse in November 2022, the asset manager was compelled to postpone the listing.
The Jacobi Bitcoin ETF represents a significant shift from the conventional exchange-traded notes (ETNs) commonly found in Europe’s crypto-backed traditional financial instruments. Jacobi emphasized that their ETF, unlike ETNs, does not involve leverage or derivatives, and thus, it mitigates the potential for significant counterparty risk.
Jacobi Asset Management received approval to launch the Bitcoin ETF in October 2021 from the Guernsey Financial Services Commission (GFSC). Fidelity Digital Assets also supports and provide custody services for ETF fund.
Jacobi has also revealed its intention to list the Jacobi Bitcoin ETF on Cboe Europe, one of the largest pan-European equity exchanges, if it gets listing approval from UK’s Financial Conduct Authority (FCA).
While European authorities approved the region’s first spot Bitcoin ETF, the United States Securities and Exchange Commission (SEC) has consistently rejected all spot Bitcoin ETFs applications.
WisdomTree, a New York-based asset management fund, has faced two rejections from the U.S. SEC regarding its spot Bitcoin ETF applications. The initial application was denied in December 2021, followed by a second proposal rejection in October 2022.
The U.S. SEC cited concerns about fraud and market manipulation as the primary reasons behind these rejections. In June 2023, WisdomTree submitted yet another application to the securities regulator, seeking approval to list its “WisdomTree Bitcoin Trust” on the Cboe BZX Exchange. The outcome of this application is unknown.
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