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 corporates and institutions to get involved in Bitcoin investments safely without all the risks associated with the technology and the counterparties.
According to the official statement, Jacobi Bitcoin ETF is a centrally cleared crypto-backed financial instrument that is supported by Fidelity Digital Assets-provided Bitcoin custody.
The approval from GFSC allows investors to trade Jacobi Bitcoin ETFs on the 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 the 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 is 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 under-informed 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 (SEC) has taken a proactive approach to allow ETF offerings in traditional exchanges. Crypto finserve Bakkt becomes the latest company to get listed on the New York Stock Exchange under the ticker symbols “BKKT” and “BKKT WS” respectively.