Spot Bitcoin ETF Launch in Europe Fails to Boost Crypto Market
The launch of the first spot Bitcoin ETF in Europe did not have the desired effect on the cryptocurrency market, as BTC’s price plummeted to multi-month lows following the launch. This mirrors a similar trend observed in 2021 after the launch of futures Bitcoin ETFs in the US, raising questions about the actual impact of these products on the crypto industry.
Main Breakdowns:
- Jacobi FT Wilshire Bitcoin ETF, trading as BCOIN, went live on the Euronext Amsterdam exchange, becoming the first spot BTC exchange-traded fund in the European Union.
- The ETF incorporates a renewable energy certificate solution, catering to institutional investors looking to align with environmental, social, and governance (ESG) goals.
- Despite expectations of a price rally, BTC’s performance has been underwhelming, with the asset dropping by around $1,500 since its weekly peak.
- Similar patterns were observed in 2021 after the launch of the first BTC-related exchange-traded fund in the US, leading to a significant drop in BTC’s price.
- The SEC’s decision on approving a spot Bitcoin ETF in the US has been delayed, with the earliest potential approval expected in 2024.
Hot Take: The launch of spot Bitcoin ETFs may not be as beneficial for the crypto industry as initially anticipated. The underwhelming price performance following these launches raises doubts about their impact. However, it remains to be seen whether this negative effect is only temporary. The delayed decision by the SEC on approving a spot Bitcoin ETF in the US further adds uncertainty to the market.
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