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 (ETFs).
Speaking to Cointelegraph, Jacobi Asset Management CEO Jamie Khurshid said that regulatory clarity helps corporations and institutions safely engage in Bitcoin investments without all the risks associated with technology and counterparties.
According to an official statement, Jacobi Bitcoin ETF is a centrally authorized crypto-backed financial instrument that is backed by custody of Bitcoin provided by Fidelity Digital Assets.
The GFSC approval allows investors to trade Jacobi Bitcoin ETFs on traditional equity markets in "all jurisdictions outside the United States and others with similar restrictions."
Khurshid, who is also a former Goldman Sachs investment banker, noted that the funds are "centrally offset by securities held in the main central securities depository (CSD)," a process familiar to traditional asset managers. Addressing investors in authorized jurisdictions, Khurshid said:
"We have feeder funds that are being created around the world that will only invest in the Jacobi Bitcoin ETF to serve their domestic demand."
Additionally, the company intends to list the Jacobi Bitcoin ETF on the Cboe Europe stock exchange, which has yet to receive listing approval from the Financial Conduct Authority (FCA), a UK financial regulator.
Related: Cryptocurrency regulation could give you a 'halo' of legitimacy, says UK watchdog
On September 6, Charles Randell, chairman of the FCA and payment systems regulator, raised concerns about a 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 like Kim Kardashian promoting unverified tokens on Instagram, which he says could mislead uninformed investors. “Why should we regulate purely speculative digital tokens? Will the participation of the FCA give them a 'halo effect' that creates unrealistic expectations of consumer protection? "
On the other hand, the United States Securities and Exchange Commission has taken a proactive approach to allowing ETF offerings on traditional exchanges. Crypto financial services company Bakkt will become the last company to be listed on the New York Stock Exchange, under the ticker symbol "BKKT."
Post navigation
Previous Post
Asian CBDC projects: What are they doing now?
