Jacobi Asset Management, a London-based multi-asset investment platform, has received approval from the Guernsey Financial Services Commission (GFSC) to launch a Bitcoin (BTC) exchange-traded fund (ETF).
Speaking to Cointelegraph, Jamie Khurshid, CEO of Jacobi Asset Management, said regulatory clarity helps businesses and institutions get involved in safe Bitcoin investments without all of the risks associated with technology and counterparties.
According to an official statement, Jacobi Bitcoin ETF is a centrally cleared, crypto-backed financial instrument that is supported by the Bitcoin custody provided by Fidelity Digital Assets.
GFSC approval allows investors to trade Jacobi Bitcoin ETFs on traditional stock exchanges in “all jurisdictions outside of America and others with similar restrictions.”
Khurshid, who is also a former Goldman Sachs investment banker, pointed out that the funds are “centrally cleared with securities held with the main central securities depository (CSD),” a process familiar to traditional asset managers. Speaking to investors from all authorized jurisdictions, Khurshid said:
“We have feeder funds set up around the world that will only invest in Jacobi Bitcoin ETF to meet their domestic demand.”
Additionally, the company intends to list the Jacobi Bitcoin ETF on the Cboe Europe stock exchange, which has yet to receive approval from the Financial Conduct Authority (FCA), a financial regulator in the UK. .
Related: Crypto Regulation Could Give It A ‘Halo’ Of Legitimacy, Says UK Watchdog
On September 6, Charles Randell, chairman of the FCA and the payment systems regulator, raised concerns about the lack of risk awareness among crypto investors in a speech written for the Cambridge International Crime Symposium economic.
Randell highlighted the role of influencers like Kim Kardashian in promoting unverified tokens on Instagram, which he said could potentially mislead under-informed investors. “Why should we regulate purely speculative digital tokens? Will FCA’s involvement give them a “halo effect” that raises unrealistic consumer protection expectations? “
On the other hand, the United States Securities and Exchange Commission has taken a proactive approach to authorize ETF offerings on traditional exchanges. Crypto financial services firm Bakkt will become the last company to be listed on the New York Stock Exchange, under the ticker symbol “BKKT”.