Bitcoin ETFs have gained significant traction in the United States since the approval of the first ETF by the Securities and Exchange Commission (SEC) in 2021. However, across the Atlantic, digital asset exchange-traded funds have faced challenges. That will change as Europe prepares for its inaugural Bitcoin ETF, two years after the United States’ first BTC ETF started trading.
The Launch of Europe’s First Bitcoin ETF
Despite previous attempts following the US approvals, Europe faced obstacles in introducing Bitcoin ETFs. One such application was from Jacobi Asset Management, which received approval in 2022. However, due to market conditions and the aftermath of the Terra LUNA collapse, the release of Jacobi’s Bitcoin ETF was delayed for a year.
According to a recent report by the Financial Times, Jacobi Asset Management is finally set to launch its Bitcoin ETF this month. The firm received trading approval in Guernsey, paving the way for the ETF’s introduction.
Growing Interest in Digital Assets ETFs
The timing of Europe’s first Bitcoin ETF launch may indicate growing interest from regional institutional players, potentially driving demand. Jacobi Asset Management acknowledges this shift in demand, attributing the launch timing to changing market dynamics since the previous summer.
Simultaneously, there is a growing clamour among significant fund managers in the United States to secure approval for a Spot ETF. BlackRock, Fidelity, WisdomTree, and others have filed applications for Spot Bitcoin ETFs. Despite the SEC’s initial assessment of their filings as inadequate, these fund managers have resubmitted their applications.
The potential approval of these ETFs could catalyse the next bull run. The mere announcement of Spot ETF applications by BlackRock and others prompted Bitcoin’s price to surge above $31,000.
The surge in fund managers seeking ETF approval indicates strong interest from their clients, primarily large investors. The entry of these investors into the crypto space could result in billions of dollars flowing into crypto assets.