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Europe's First Bitcoin Spot ETF: New Opportunities for Crypto Investors

 


The crypto world is on the verge of a groundbreaking event: the launch of Europe's first Bitcoin spot ETF! While the US is still seeking approval, Jacobi Asset Management has paved the way for a publicly traded Bitcoin fund (ETF). Until now, European Bitcoin investors only had access to Exchange Traded Products (ETPs) in the form of Exchange Traded Notes (ETN) or Exchange Traded Commodities (ETC). But that's about to change.

What makes the European Bitcoin ETF special?

Unlike the United States, ETFs with a single underlying asset are generally not allowed in the European Union. Therefore, Jacobi Asset Management cleverly registered the Bitcoin spot ETF in Guernsey. As a non-EU jurisdiction, Guernsey provides regulators with more flexibility in approving the fund. David Crosland, Partner at offshore law firm Carey Olsen, explained that Guernsey's specialized fund administration area allowed for swift adaptation and support of the ETF's launch.

A key difference from previous ETPs is that the new Bitcoin ETF cannot be leveraged or use derivatives, protecting investors from potential "significant counterparty risk" associated with leveraged products. Originally scheduled for July 2022, the launch was postponed due to turbulence caused by Terra Luna and FTX. However, the market demand has shifted significantly since last summer, and now the timing seems ripe.

What does it mean for the US?

While Europe takes the lead, the approval of a Bitcoin spot ETF in the US is still pending. Several financial institutions, including the world's largest asset manager BlackRock, are currently seeking approval from the US Securities and Exchange Commission (SEC). The growing institutional interest in Bitcoin is a clear signal for the market, and the approval of a US ETF could provide a substantial boost to the entire industry.

Even BlackRock's CEO, Larry Fink, recently expressed positivity about Bitcoin, calling it "digital gold" and an "international asset" that could serve as an alternative for people to use.

Conclusion: Exciting Times in the Crypto World

The upcoming launch of Europe's first Bitcoin spot ETF marks a significant milestone for the crypto industry. With Jacobi Asset Management leading the way, European investors will finally have the opportunity to invest directly in Bitcoin without resorting to ETPs. Meanwhile, hopes remain high for approval in the US, as institutional interest in Bitcoin continues to grow.

The crypto world is undoubtedly undergoing a transformation, and the ETF launch could be another sign of increasing acceptance and integration of cryptocurrencies into the traditional financial system. However, investors should always remember that crypto investments come with risks, and thorough research and risk assessment are essential before entering the market. Overall, the prospect of broader availability of Bitcoin ETFs is an exciting development that has the potential to profoundly change the crypto landscape.

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