Mastering Crypto

09/08 16:17

Europe Expects Its First Bitcoin ETF This Month

Europe’s first bitcoin exchange-traded fund (ETF) is set to launch in July after a 12-month delay caused by the crypto winter. The fund has been authorized in Guernsey, a more flexible jurisdiction, which will ostensibly help to avoid some of the regulatory challenges associated with the European Union.

Europe to Have Its First Bitcoin ETF Listed After Year-Long Delay

The first bitcoin exchange-traded fund in Europe is expected to be publicly listed by the end of this month, a full year after its initially planned launch, the Financial Times reported on Thursday. The ETF was first announced by Jacobi Asset Management in July 2022.

The asset manager wanted to list it on the Euronext exchange last year but decided that “the time wasn’t right” after a string of negative events in the crypto space like the crash of the terra-luna project and the bankruptcy of cryptocurrency exchange FTX. The issuer now says “demand has shifted since last summer” and the ETF is “on track.”

All exchange-traded products (ETPs) based on digital assets in Europe so far have been structured as exchange-traded notes (ETNs), rather than funds, the business daily pointed out. Jacobi has specifically highlighted that it’s launching an ETF, not an ETN. While an ETF shareholder owns a portion of a fund’s underlying asset, ETN investors own a debt security.

“There has been so much misinformation and misuse of the term ETF by [ETN] issuers, presumably to obfuscate the risks that are inherent in acquiring and investing in ETNs,” Jacobi’s co-founder and Chief Operating Officer, Peter Lane, was quoted as saying last year.

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