Europe’s First Bitcoin ETF Planned for Late July 2023

Liputan6.com, Jakarta Europe’s first Bitcoin ETF is expected to be publicly listed by the end of this month, a full year after its previously planned launch. Plans for a Bitcoin ETF were first announced by Jacobi Asset Management in July 2022.

As reported by Bitcoin.com, Tuesday (18/7/2023), the asset manager wanted to list it on the Euronext exchange last year but decided the timing was not right after a series of negative events in the crypto space such as the collapse of project terra-luna and the bankruptcy of cryptocurrency exchange FTX.

All exchange-traded products based on digital assets in Europe have so far been compiled as exchange-traded records.

The bitcoin ETFs that Jacobi Asset Management is prepared to offer cannot use derivatives, which could otherwise involve significant counterparty risk.

Regulatory Challenges in Europe

Launching a bitcoin ETF in Europe will come with “enormous” regulatory challenges, according to ETF founding partner and digital asset consultancy Blackwater Search and Advisory Michael O’Riordan.

He explained bitcoin is not considered a qualifying asset under the EU Venture for Collective Investment in Transferable Securities Directive (Ucits) which allows collective investment schemes to operate across the Union based on authorization from a single member state.

Quoting data from Coinbase and Bloomberg, the report details net flows to European digital asset ETPs reaching USD 483 million or the equivalent of IDR 7.2 trillion (assuming an exchange rate of IDR 14,958 per US dollar) over the past 18 months.

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