The arrival on the classic European financial market of the very first Bitcoin spot ETF had been planned for several months. However, the project was put on hold following the unexpected bankruptcies of Terra Luna and FTX last year.
BCION Bitcoin ETF Expected to Launch This Month
Asset manager Jacobi Asset Management announced Thursday, July 13 the upcoming launch of the Bitcoin BCOIN ETF. Stakeholders did not specify the date of implementation of the operation.
According to their forecast however, the latter should take place by the end of the month on the Euronext platform. The completion of this transaction will then mark the operationalization of the very first Bitcoin ETF on the European financial market.
“This will be the first Bitcoin ETF on Euronext. All other products that currently exist in our segment are exchange-traded bonds. With our ETF, investors directly acquire and own the shares of the fund that holds the bitcoin”explained the asset manager on its website.
This will undoubtedly be a major breakthrough for the European crypto industry. The immediate benefits of such a development are also obvious according to Stéphane Boujnah, CEO of Euronext.
According to him, the Bitcoin BCOIN ETF is designed to eliminate counterparty risk. It cannot be used for leverage. This being so, it significantly limits the exposure of institutional investors to financial risk.
This is because the Bitcoin BCOIN ETF does not involve lending or yield platforms. Even fewer decentralized finance (DeFi) protocols. Unlike other exchange-traded digital products in Europe, it promotes direct ownership acquisition.
Thus, investors enjoy greater transparency and control. Independent audits and custody services performed through Fidelity Digital Assets should also guarantee the security of the ETF.
The introduction of the latter on the traditional European financial market should attract institutional investors. This, by highlighting the viability of cryptos as a relevant investment for diversified portfolios.
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