Crypto investors have been eagerly awaiting the approval of a US-based spot Bitcoin ETF for two years, but the good news has come from Europe. The Bitcoin price doesn’t seem to care much about this development. However, the recent move by the EU with its MiCA regulation on cryptocurrencies should be read together with the regulatory clarity it brings. Following Asia, the EU region is also getting rid of its negative approach to cryptocurrencies.
First Spot Bitcoin ETF Listed
London-based Jacobi Asset Management has listed Europe’s first spot Bitcoin exchange-traded fund (ETF) on Euronext Amsterdam, about two years after its approval. Jacobi’s FT Wilshere Bitcoin ETF is regulated by the Guernsey Financial Services Commission (GFSC) and will trade under the ticker symbol “BCOIN”.
According to an announcement made by Jacobi today, the custody service for the fund is provided by Fidelity Digital Assets, and the trading firm Flow Traders acts as the market maker. Jacobi initially received approval for the fund in October 2021 and planned to list it in 2022. However, chaotic developments such as the collapse of the Terra ecosystem and the bankruptcy of the crypto exchange FTX negatively affected the industry and led to the postponement of the listing.
What Benefits Does It Bring for Cryptocurrencies?
Crypto products traded on the stock market (ETPs) had already been launched through 21Shares. However, Jacobi obtained permission for the listing of the first Spot Bitcoin ETF. While ETF shareholders have a portion of the underlying shares, ETN investors own a debt security. Jacobi stated that its ETF cannot be leveraged or use derivatives, unlike ETNs. Despite dozens of applications made to the Securities and Exchange Commission (SEC) in the past few years, all of which were rejected, the listing means that Europe will have a spot Bitcoin ETF traded before the US.
Qualified investors in the EU region can now easily invest in the king of cryptocurrencies through the security of Fidelity and Jacobi.
So, what is the status of the spot Bitcoin ETF approval process for the US? There is an ongoing Grayscale case, and according to officials, the case will be concluded before the end of this year. It doesn’t make sense for the SEC to make a decision contradicting what it defends in court before the end of this case. Therefore, investors will have to wait for the outcome of the GBTC case. The Spot Bitcoin ETFs under review in January and March will have their final approval dates, and by mid-March, the SEC will approve one or several applications. Most experts do not expect the SEC to reject the applications as a whole, considering the completion of “surveillance-sharing” agreements, including BlackRock’s.
