Jacobi Asset Management will launch Europe’s first Bitcoin exchange-traded fund (ETF) after delays caused by the Terra Luna crash.
Jacoby confirmed that their fund is the first European Bitcoin ETF to expose investors to actual stocks.
Jacobi’s new product goes beyond strict asset rules
So far, European bitcoin “funds” have given shareholders a debt guarantee rather than a portion of the fund’s underlying equity. The former are known as exchange-traded notes (ETNs) as opposed to funds.
Jacoby log file project In Guernsey, whose non-EU status allowed regulators flexibility in approving the fund. Guernsey’s laws prohibit traders from using Jacobi ETFs to trade in leveraged or derivatives.
ETFs enable their holders to diversify their exposure to different asset classes. The EU guidelines do not recognize Bitcoin as an eligible asset class for inclusion in the ETP program.
According to Coinbase and Bloomberg, net inflows into European exchange-traded products (ETPs) amounted to $483 million in the past 18 months.
Investments in the European ETP are currently $4.8 million.
Bitcoin futures contracts have been approved for pre-spot trading in the US
Last month, the US Securities and Exchange Commission (SEC) blocked early Bitcoin ETF applications due to market manipulation concerns. It said the orders from the two big investment firms, BlackRock and Fidelity, needed more satisfactory market monitoring.
Since then, many companies have rehashed the statements, citing recently concluded market watch share agreements — however, approval of a US-based Bitcoin ETF is pending.
Meanwhile, several Bitcoin futures products from ProShares, VanEck, and Valkyrie are already trading on the New York Stock Exchange, Chicago Mercantile Exchange, and Nasdaq.
Several years ago, Grayscale Investments launched a Bitcoin ETF-like product to give institutions access to the asset. Since then, shares of the Grayscale Bitcoin Trust have been trading at a discount to the underlying Bitcoin since last year, prompting the company to apply to convert the product into an ETF.
The Securities and Exchange Commission denied Grayscale’s request, prompting the company to sue the agency. Litigation continues.
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