Aaryamann Shrivastava
FXStreet
- Europe-based Jacobi Asset Management listed the first spot Bitcoin ETF on the exchange Euronext Amsterdam.
- While the asset management firm received approval back in 2021, turbulent market conditions owing to the FTX collapse and other events.
- The US SEC is set to comment on BlackRock, Fidelity and other spot Bitcoin ETF filings by September after delaying the Ark Invest filing this week.
Europe is thrusting forward in the crypto adoption race with the launch of the first spot Bitcoin exchange-traded fund (ETF). Europe was also the first to establish a set of regulations for cryptocurrencies outpacing the United States on both fronts.
Europe launches spot Bitcoin ETF
Crypto enthusiasts in Europe are set to become the first people in the world to invest in a spot Bitcoin ETF as August 15 marked the launch of the first fund of its type. Listed on the stock exchange Euronext Amsterdam, Jacobi FT Wilshire Bitcoin ETF by Jacobi Asset Management has had investors' eyes locked on it for a while now.
The ETF, compliant with SFDR Article 8 through its decarbonization strategy, first received the regulator's approval back in 2021. The launch, however, was delayed owing to multiple reasons, including the crypto market crash induced by Three Arrow Capitals and FTX exchange's collapse last year.
While the ETF has been speculated to launch since July this year, in the United States, the same month was the first instance of a reported filing of a spot Bitcoin ETF. BlackRock propelled the ETF, which was followed by multiple asset management firms filing for a similar fund.
The Securities and Exchange Commission (SEC) in the US, which has been skeptical about such ETFs for a long time, initially denied the applications. However, the updated filings and refilings were taken into consideration recently.
Nonetheless, no decision or comment has been made by the regulatory body, with filings receiving a delay in decision. The most recent victim of this was Ark Invest, whose spot Bitcoin ETF did not get any verdict even on the second deadline of August 11.
BlackRock, Fidelity, VanEck and other applicants are due their decision in the first week of September. The SEC though is most likely set to delay their decision akin to Ark Invest. This is in line with the opinion of the former SEC Office of Internet Enforcement Chief, John Reed Stark, who recently tweeted,
"My take is that the current SEC will NOT approve a bitcoin spot ETF application for a range of compelling reasons."
Will the SEC Approve Any Of The Recent Bitcoin Spot ETF Applications?
— John Reed Stark (@JohnReedStark) August 13, 2023
People often ask for my opinion on whether the SEC will approve any of the recent spate of bitcoin spot ETF applications, which is an interesting and important question.
My take is that the current SEC will… pic.twitter.com/lPXebl03Y4
Bitcoin, altcoins, stablecoins FAQs
What is Bitcoin?
Bitcoin is the largest cryptocurrency by market capitalization, a virtual currency designed to serve as money. This form of payment cannot be controlled by any one person, group, or entity, which eliminates the need for third-party participation during financial transactions.
What are altcoins?
Altcoins are any cryptocurrency apart from Bitcoin, but some also regard Ethereum as a non-altcoin because it is from these two cryptocurrencies that forking happens. If this is true, then Litecoin is the first altcoin, forked from the Bitcoin protocol and, therefore, an “improved” version of it.
What are stablecoins?
Stablecoins are cryptocurrencies designed to have a stable price, with their value backed by a reserve of the asset it represents. To achieve this, the value of any one stablecoin is pegged to a commodity or financial instrument, such as the US Dollar (USD), with its supply regulated by an algorithm or demand. The main goal of stablecoins is to provide an on/off-ramp for investors willing to trade and invest in cryptocurrencies. Stablecoins also allow investors to store value since cryptocurrencies, in general, are subject to volatility.
What is Bitcoin Dominance?
Bitcoin dominance is the ratio of Bitcoin's market capitalization to the total market capitalization of all cryptocurrencies combined. It provides a clear picture of Bitcoin’s interest among investors. A high BTC dominance typically happens before and during a bull run, in which investors resort to investing in relatively stable and high market capitalization cryptocurrency like Bitcoin. A drop in BTC dominance usually means that investors are moving their capital and/or profits to altcoins in a quest for higher returns, which usually triggers an explosion of altcoin rallies.
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