Europe is about to witness the launch of its first Bitcoin spot exchange fund (ETF). The long-awaited debut of the European bitcoin spot ETF comes after a significant delay, which has only intensified the anticipation surrounding its arrival. In conjunction with this news, the US is also seeing a surge of interest in a similar product, starting with BlackRock’s introduction of a US bitcoin ETF.
Jacobi Asset Management is responsible for listing the ETF, which has already been approved in 2021. Due to market conditions in 2022, the ETF has been delayed – although there is no official launch date yet, development is just in time.
The ETF is designed to provide investors with exposure to bitcoin without directly owning the underlying asset, albeit at the expense of the real estate that the self-custodianship only offers. By offering a regulated and easily accessible investment vehicle, the bitcoin spot ETF has the potential to attract a broader group of institutional investors.
The delay in the launch of the European Bitcoin spot ETF has fueled market expectations. Investors have been eagerly awaiting a regulatory green light that will enable them to take advantage of the bitcoin market with the convenience and security of an ETF structure. Now, with the imminent arrival of Europe’s first Bitcoin ETF, many believe it could usher in a new era for bitcoin in the region.
At the same time, the US has seen a spike in interest in the spot bitcoin ETF following BlackRock’s recent offering. As one of the largest asset managers in the world, BlackRock’s entry signals a significant shift in sentiment towards bitcoin. In fact, several other similarly large companies introduced instant bitcoin ETFs after that.
The filing indicates that even established traditional financial institutions are aware of the growing demand for regulated exposure to Bitcoin. If approved, the US-based Bitcoin spot ETF could potentially provide a huge boost to the market, attracting institutional investors and further popularizing Bitcoin.