First European Bitcoin ETF set to launch this month after 12-month delay

Jacobi Bitcoin (BTC) exchange-traded fund (ETF), the first European BTC ETF, is set to launch later this month on Euronext Amsterdam, Financial Times reported on July 13.

Jacobi Asset Management reportedly stated that the fund was “on track” for listing this month as there was now demand for it following its initial 12-month-long hiatus because of the Terra Luna-induced crypto market collapse in 2022.

Jacobi ETF differs from Europe’s usual ETF

The distinctive feature of Jacobi’s ETF lies in its structure. Unlike conventional European exchange-traded products tied to digital assets, it’s not organized as an exchange-traded note (ETN). Highlighting the difference, Jacobi stated that its shareholders would have a stake in the ETF’s underlying assets, contrasting to ETN investors who essentially own a form of debt security.

Jacobi co-founder and COO Peter Lane further highlighted this difference, saying:

“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 Bitcoin ETF approved in Guernsey

Additionally, the Bitcoin ETF has been approved in Guernsey, a jurisdiction that the asset manager likely chose because of its flexibility compared to other European countries.

Some industry experts have suggested that the asset manager might face challenges registering in other European nations, given that Bitcoin doesn’t qualify as an asset under the E.U. Undertakings for the Collective Investment in Transferable Securities (UCITS) rules.

David Crosland, a partner at the law firm Carey Olsen, reportedly said Guernsey’s flexibility enabled the launch of a regulated BTC fund inaccessible elsewhere in Europe.

Bitcoin ETF appetite high

Meanwhile, the Jacobi ETF is coming at a time of increased institutional interest in Bitcoin ETF on the other side of the Atlantic.

Since BlackRock applied for a spot Bitcoin ETF in June, several other traditional financial institutions, including Fidelity and others, have filed similar applications triggering waves of optimism that the U.S. might soon approve its first BTC spot ETF product.