Investing
First EU Spot Bitcoin ETF to Launch Soon as Digital Asset Inflows Stay Strong
Published:
European crypto enthusiasts will soon be able to invest in a spot Bitcoin exchange-traded fund (ETF). Wealth manager Jacobi Asset Manager said it plans to launch a spot Bitcoin ETF in July amid a notable uptick in digital asset fund inflows.
After a Year’s Delay, Europe is Getting its First Spot Bitcoin ETF
The FT reported on Thursday that the first spot Bitcoin ETF in Europe is set to be launched this month after a 1-year delay. Namely, Jacobi Asset Management’s spot Bitcoin ETF was initially planned to debut in July 2022. Still, the investment firm made a U-turn due to unfavorable market circumstances triggered by Terra’s collapse a month earlier.
Now, the asset manager said it is “on track” to list the fund this month, citing a notable shift in demand compared to summer 2022. The launch will mark the first crypto ETF in Europe, given that all digital assets exchange-traded products currently available are structured as exchange-traded notes (ETN) rather than funds.
An ETF allows shareholders to hold a portion of a fund’s underlying shares, while with ETNs, investors own a debt security instead of the underlying asset. In contrast to ETNs, ETFs cannot be leveraged or use derivatives, making them significantly less risky, according to Jacobi.
Jacobi’s announcement comes amid a resurgence in digital asset fund flows. Notably, digital asset investment products saw three consecutive weeks of inflows, totaling $470 million, amid investors’ excitement about possible institutional crypto adoption.
Why are spot Bitcoin ETFs attracting so much attention?
The change in sentiment came after BlackRock, the largest global asset manager, applied to launch a spot Bitcoin ETF in the US. Several other traditional finance (TradFi) firms made similar filings, including Invesco, WisdomTree, Valkyrie, Fidelity, and more.
The spot Bitcoin ETF applications caused a significant improvement in market sentiment as investors hoped that the world’s largest cryptocurrency would finally witness mainstream acceptance among institutions. This optimism fueled a crypto market rally, bringing BTC above $30,000 for the second time in 2023.
If authorized, a spot Bitcoin ETF would provide retail and institutional investors in the US with direct access to the world’s biggest crypto asset. In other words, it would allow investors to trade Bitcoin through a brokerage account. BlackRock’s spot BTC ETF application was described as unclear and uncomprehensive by the US Securities and Exchange Commission (SEC), but the asset manager refiled it after updating its application.
This article originally appeared on The Tokenist
The Average American Is Losing Momentum On Their Savings Every Day (Sponsor)
If you’re like many Americans and keep your money ‘safe’ in a checking or savings account, think again. The average yield on a savings account is a paltry .4%1 today. Checking accounts are even worse.
But there is good news. To win qualified customers, some accounts are paying more than 7x the national average. That’s an incredible way to keep your money safe and earn more at the same time. Our top pick for high yield savings accounts includes other benefits as well. You can earn up to 4.00% with a Checking & Savings Account today Sign up and get up to $300 with direct deposit. No account fees. FDIC Insured.
Click here to see how much more you could be earning on your savings today. It takes just a few minutes to open an account to make your money work for you.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Latest from 24/7
Our expert who first called NVIDIA in 2009 is predicting 2025 will see a historic AI breakthrough.
You can follow him investing $500,000 of his own money on our top AI stocks for free.