Europe to Get New Bitcoin ETF in 2023, Despite Setbacks

Jacob Asset Management, a company that specializes in investing in sustainable and innovative businesses, received the green light for a Bitcoin ETF from the Guernsey Financial Services Commission in October 2021, yet the plans to launch its initial public offering on the Euronext Amsterdam Exchange back in July 2022 were delayed due to “unprecedented market conditions”.

Finally, after this long delay in July of 2023, we are receiving the confirmation from its launch during an interview with Peter LaneJacob’s Asset Management and co-founder, Lane has not announced a launch date yet, as they are still in the works the finer details, but it reassured that it will be in 2023.

Europe Wins the Bitcoin ETF Race

The asset manager’s decision to launch the ETF in 2023 reflects a gradual change in the market demand for crypto-backed financial instruments since 2022. The ETF will be the first of its kind in Europe, as it will be a centrally cleared fund with custody provided by Fidelity Digital Assets, a reputable digital asset service provider.

This differs from the existing exchange-traded notes (ETNs) that are backed by crypto assets, which are debt securities that do not give the investors any ownership of the underlying assets. The ETF will also avoid the use of leverage or derivatives, which could expose investors to higher risks of market manipulation.

The U.S. Securities and Exchange Commission (SEC) has not approved any spot Bitcoin ETFs, unlike Europe, which launched its first one in October 2021. 

Europe Wins the Bitcoin ETF Race

However, several institutional players, such as BlackRock and Fidelity, have submitted new spot Bitcoin ETF proposals in 2023, aiming to be the first to receive the SEC’s green light for this type of financial instrument. The SEC had previously authorized some futures Bitcoin ETFs in 2021.

Grayscale applied to the SEC to convert the trust into an ETF, which would allow for more efficient trading and lower fees. However, the SEC denied the application, citing concerns about the regulation and liquidity of Bitcoin. Grayscale then filed a lawsuit against the SEC, arguing that the agency’s decision was arbitrary and unfair. The case is still pending in court.