Jacobi Asset Management will launch the first Bitcoin exchange-traded fund (ETF) in Europe. Until now, only Exchange Traded Products (ETPs) structured as Exchange Traded Notes (ETN) or Exchange Traded Commodities (ETC) were available to European Bitcoin investors. In contrast to the USA, ETFs with only a single underlying are generally not possible in the European Union, hence the detour via other ETPs structured under the law of obligations.
Bitcoin ETF: Europe yes, EU no
Jacobi registered the product in Guernsey, whose non-EU status allowed regulators flexibility in approving the fund. “As a specialized fund administration area not subject to the inherent inflexibility of EU membership, Guernsey was able to adapt quickly and support this rollout,” said David Crosland, partner at offshore law firm Carey Olsen.
The company said its ETF, unlike ETNs, cannot be leveraged or use derivatives, which could otherwise create “significant counterparty risk.” The launch was originally planned for July 2022. However, the company hesitated because of the turmoil from Terra Luna and FTX. “The time was not right”. Jacobi told the Financial Times said it was now ready to launch the ETF this month after market demand “shifted since last summer.”
BlackRock and Co. – Will the USA follow soon?
No bitcoin spot ETF has yet been approved in the United States. A number of financial service providers are currently seeking approval from the US Securities and Exchange Commission (SEC). Including the largest wealth manager in the world, BlackRock. Institutional interest in Bitcoin is increasing. A positive signal for the market. The industry is hoping for a boost from the approval of a US ETF.
BlackRock CEO Larry Fink also commented positively on Bitcoin. in one interview he found clear words with the news channel Fox Business. “Crypto is digital gold and bitcoin is an international asset… it may represent an asset that people can use as an alternative.” In this article you can read how seriously BlackRock and Co. take Bitcoin.
