JAM to Introduce First Bitcoin ETF in Europe on Euronext
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- JAM is set to launch the first exchange-traded fund (ETF) for bitcoin in Europe on the Euronext exchange.
- Earlier this month, Bitcoin fell below $20,000 for the first time since December 2020, plunging to a low of $17,592.7.
- Launching Europe’s first spot ETF would be a significant step in enhancing the country’s access to cryptocurrencies.
The spot Bitcoin ETF is set to launch in Europe this summer and it would provide European investors access to BTC on markets. Jacobi Asset Management stated yesterday that it would launch the first exchange-traded fund (ETF) for bitcoin in Europe. It’s expected to launch on the Euronext exchange.
The platform of a spot BTC ETF comes particularly at a time when the markets are experiencing instability. Heightened inflation rates, the Ukraine-Russia war, and other COVID-19 problems are driving violatility.
Dip in the Cryptocurrency Market & Bitcoin ETF
Although it’s been a challenging year for cryptocurrencies, the notable drops in the most well-known coins, like BTC and ETH, are proving this. Earlier this month, Bitcoin fell below $20,000 for the first time since December 2020, plunging to a low of $17,592.7. The largest digital currency, Bitcoin, is down around 70% from its peak of almost $69,000 in November.
Investors have been withdrawing their funds from high-risk assets in favor of safe-haven assets like gold. The reason could be tied to the higher inflation and tighter monetary policies by major central banks. These factors were seen as a key reason behind the bearish prices of other cryptocurrencies.
Can Bitcoin ETH Underpin Bitcoin Prices?
Since a spot BTC ETF is scheduled to launch in Europe this July. While many investors might be looking to purchase at the lowest price. This will be the first BTC ETF or fund to invest directly in Bitcoin to be listed on Euronext. This is why it was seen as a positive factor that would likely leave a positive impact on the crypto prices.
About Jacobi Asset Management
It is worth mentioning that Jacobi Asset Management was started in 2021 by CEO Jamie Khurshid. It was the first regulated Bitcoin ETF in Europe, giving investors secure access to digital assets.
According to Edd Carlton, an institutional digital asset trader at Flow Traders shared his thoughts. He said the creation of a spot Bitcoin ETF is “associated with the rising demand from institutional investors.” Jersey, Brazil, and Canada have created only three foreign exchange-traded funds. All of which are substantially smaller than most ETFs based in the United States. The Jacobi Bitcoin ETF will be considered the largest Bitcoin ETF in the world, as per the source.
ETF in Europe Can Open Doors for Companies
Launching a spot Bitcoin ETF in Europe will probably open up a previously closed door of access for companies. These companies can include pension funds, insurance companies, and mutual funds. A spot bitcoin exchange-traded fund (ETF) may gain popularity quickly. It’s mainly because there aren’t many options for buying Bitcoin through conventional channels in Europe.
Hence, launching Europe’s first spot ETF would be a significant step in enhancing the country’s access to cryptocurrencies. This may be a big reason why BTC prices haven’t dropped more.
