Jacobi Asset Management has been given approval from the Guernsey Financial Services Commission (GFSC) to launch a centrally-cleared Bitcoin exchange-traded fund (ETF).
It is the world’s first tier one Bitcoin ETF.
According to the official announcement, the fund – Jacobi Bitcoin ETF – will be listed on CBOE Europe, subject to Financial Conduct Authority (FCA) listing approval.
Jacobi said it signed a deal with Fidelity Digital Assets for custodial needs.
Jamie Khurshid, CEO at Jacobi Asset Management, said the company was happy to launch a new product that will track Bitcoin’s performance.
“We are de-risking investments in crypto by removing the technology risk associated with the physical asset and the counterparty risk associated with traditional funds or tracker products, that are unregulated leveraged debt instruments,” he said.
Direct participation in physically settled BTC through Jacobi
According to Roy McGregor, Chairman of Jacobi Asset Management and former CEO of Credit Suisse Channel Islands, the intention of Jacobi ETF was to “finally bring digital assets wholly into the mainstream investment infrastructure with the support of the leading firms we are working with”.
“It will provide investors with the opportunity to participate directly in physically settled Bitcoin,” he said.
Chris Tyrer, Head of Fidelity Digital Assets in Europe, commented that a “greater diversity of investor interest has created significant demand for additional vehicles for exposure to help provide broader access to digital asset markets”.
Cryptocurency markets have been buzzing with anticipation at the prospect of a possible US announcement of a crypto ETF. Last week, crypto lender BlockFi Inc and Cathie Wood’s Ark Investment Management put their names on applications for futures-backed Bitcoin ETFs.