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A year ago, Europe’s first Bitcoin ETF was scheduled to launch, but that plan was put on hold. The brainchild of Jacobi Asset Management, the launch was delayed due to concerns stirred up by the May 2022 crash of cryptocurrency Terra Luna and the November collapse of FTX. Now, the plan is back on track. Jacobi reports that their Bitcoin ETF, which will trade on the Euronext Amsterdam, is due to be introduced to the market this month.
The delay didn’t impact investor interest negatively. In fact, demand shifted favorably over the past summer, as reported by Jacobi. The increased interest comes as large fund managers in the United States have been actively pushing for the approval of a Spot ETF, consequently boosting general interest in these investment vehicles.
An essential distinction to note is that Jacobi’s offering diverges from most digital assets traded on European exchanges. While most are exchange-traded notes (ETN), their product is an exchange-traded fund (ETF). ETF shareholders own a part of the fund’s underlying shares, unlike ETN investors who hold a promissory note without owning the underlying assets. Jacobi is clear on this difference, underlining the importance of understanding that they’re introducing an ETF, not an ETN.
The introduction of the Bitcoin ETF is significant. It’s a major stride towards Bitcoin’s acceptance as a valid investment and could encourage institutional investors to explore this avenue without worrying about managing market volatility. Additionally, it can potentially bring more capital to the broader crypto market, encouraging growth.
Lastly, Bitcoin investors stand to gain from the ETF launch. This new and easier route to invest in Bitcoin, combined with the potential decrease in market volatility, looks promising for both current and future Bitcoin enthusiasts.