Guernsey regulator approves Jacobi Asset Management’s Bitcoin ETF launch

GFSC-approved Jacobi Bitcoin ETF is a centrally cleared crypto-backed financial instrument with custody supported by Fidelity Digital Assets.

Jacobi Asset Management, a London-based multi-asset investment platform, received approval from the Guernsey Financial Services Commission (GFSC) to launch a Bitcoin (BTC) exchange-traded funds (ETF). 

Speaking to Cointelegraph, Jacobi Asset Management CEO Jamie Khurshid said that the regulatory clarity helps corporations and institutions to get involved in Bitcoin investments safely without all the risks associated with the technology and counterparties.

According to an official statement, Jacobi Bitcoin ETF is a centrally cleared, crypto-backed financial instrument that is supported by Bitcoin custody provided by Fidelity Digital Assets.

The approval from GFSC allows investors to trade Jacobi Bitcoin ETFs on traditional stock markets across “all jurisdictions outside of America and others with similar restrictions.”

Khurshid, who is also a former Goldman Sachs investment banker, highlighted that the funds are “centrally cleared with securities held at the leading central securities depository (CSD),” a process familiar to traditional asset managers. Addressing investors across the authorized jurisdictions, Khurshid said:

“We have feeder funds being set up around the world that will be investing solely in Jacobi Bitcoin ETF to service their domestic demand.”

Moreover, the company intends to list the Jacobi Bitcoin ETF on the Cboe Europe equity exchange, which has yet to be granted listing approval by Financial Conduct Authority (FCA), a financial regulator in the United Kingdom.

Related: Regulating crypto could give it ‘halo’ of legitimacy, says UK watchdog

On Sept. 6, Charles Randell, chair of the FCA and Payments Systems Regulator, raised concerns about the lack of risk awareness among crypto investors in a speech written for the Cambridge International Symposium on Economic Crime.

Randell highlighted the role of influencers such as Kim Kardashian promoting unverified tokens on Instagram, which according to him could potentially mislead underinformed investors. “Why should we regulate purely speculative digital tokens? Will the involvement of the FCA give them a ’halo effect’ that raises unrealistic expectations of consumer protection?”

On the other hand, the United States Securities and Exchange Commission has taken a proactive approach to allow ETF offerings on traditional exchanges. Crypto financial services company Bakkt will become the latest company to be listed on the New York Stock Exchange, under the ticker symbol “BKKT.”