While regulators in the United States continue to uphold a hostile stance towards investment platforms on the launch spot Bitcoin exchange-traded funds (ETFs), regulators in other parts of the world are approving the financial product by allowing the trading of the product within the region.
An example is Europe. In an August 15th press release, the London-based investment company Jacobi Asset Management announced the launch of its newly approved spot Bitcoin ETF.
Spot Bitcoin ETF is a financial product that allows a publicly-traded company to offer an asset that tracks Bitcoin price. This way, investors gain exposure to Bitcoin while enjoying the safety connected to large investment firms.
First European Spot Bitcoin ETF
Jacobi Asset Management joined forces with index issuer Wilshire Indexes to give the newly launched financial product the ticker – BCOIN. Through Wilshire Bitcoin Blended Price Index, BCOIN will access the average Bitcoin price in real time. The spot Bitcoin ETF will be available for trading on the European stock exchange Euronext Amsterdam.
The BCOIN product is regulated by the Guernsey Financial Services Commission (GFSC). Fidelity Digital Assets, the crypto-focused subsidiary of the American multinational financial service provider Fidelity Investments, offers custodial services for the ETF.
Commenting on the latest development, Jacobi Asset Management CEO Martin Bednall said:
“It is exciting to see Europe moving ahead of the US in opening up Bitcoin investing for institutional investors who want safe, secure access to the benefits of digital assets using familiar and regulated structures like our ETF. Unlike other products in the European market which are debt instruments, our fund owns the underlying asset directly.”
U.S. SEC Yet to Approve Bitcoin ETF
The U.S. Securities and Exchange Commission (SEC) is the agency responsible for approving or disapproving a Bitcoin ETF within the country. In the past, the financial regulator turned down applications for a Bitcoin ETF from several investment platforms.
Following BlackRock’s application for a Bitcoin ETF, several investors and institutions have looked up to the agency to approve the asset. Still, it has yet to give a green light to spot Bitcoin ETFs.
