- Europe is taking a significant step towards launching a spot Bitcoin ETF that could be a turning point for cryptocurrency investors and traders in the region.
- Jacobi Asset Management initially announced that the ETF would be launched in July 2022, following its approval in 2021.
- According to a Bloomberg analyst, if any of the recent ETF applications are approved by the SEC, it is expected to bring a capital inflow of $30 trillion into the market.
Jacobi Asset Management is preparing to launch the first spot Bitcoin ETF in Europe this month, raising questions about how it will affect the price.
Launching the First Spot Bitcoin ETF in Europe
While market players in the US remain in a conflicting situation about what the coming months will bring, Europe is taking a significant step towards launching a spot Bitcoin ETF that could be a turning point for cryptocurrency investors and traders in the region.
Jacobi Asset Management initially announced that the ETF would be launched in July 2022, following its approval in 2021. However, the collapse of Terra Luna and the crypto exchange FTX influenced the company’s decision to make significant changes to the launch date as the “timing wasn’t right,” and the ETF is now reported to be launched in July, with the asset manager stating that “demand has changed since last summer.”
It is important not to confuse the spot Bitcoin ETF with Bitcoin exchange-traded notes (ETNs) as many assume that the asset manager is launching the latter. ETN investors have a debt claim, while ETF shareholders receive a portion of the fund’s shares.
The asset manager clarified that there is misinformation and misusage of the term ETF, aiming to “likely obfuscate the risks that come with ETN acquisition and investment by ETN issuers.”
Can the Launch of a Spot Bitcoin ETF in Europe Impact Bitcoin’s Price?
As the demand for a spot Bitcoin ETF grows over the years, the launch of Europe’s first spot ETF could potentially lead to an increase in the price of Bitcoin. It is expected that the demand will prompt more investors and traders to seek unconventional access to Bitcoin.
Particularly, the US market anticipates that the launch of a spot Bitcoin ETF in the country could open doors. According to a Bloomberg analyst, if any of the recent ETF applications are approved by the SEC, it is expected to bring a capital inflow of $30 trillion into the market.
Blackrock, a $9 trillion asset management firm in the US, is one of the many companies that have applied for a spot Bitcoin ETF. The outcome of the ETF applications remains uncertain as market regulators are yet to respond.
Meanwhile, Bitcoin managed to break out of the $30,000 price level last week after struggling to sustain momentum. Bitcoin is currently trading at a price of $30,212 with a 0.3% loss in the last 24 hours.
