Jacobi Asset Management has been given the green light by the Guernsey Financial Services Commission to launch its first "tier one" bitcoin exchange traded fund (ETF).
The open-ended ETF is a centrally cleared crypto-backed financial instrument, with custody provided by Fidelity Digital Assets.
Jacobi said it plans to list its the ETF on Cboe Europe, one of the large pan-European equity exchanges, subject to Financial Conduct Authority (FCA) listing approval.
Investors will have access to bitcoin with institutional-grade firms which aims to remove the challenges and risks of handling the asset directly.
Jamie Khurshid, CEO at Jacobi Asset Management, said: “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.”
Prior to FCA listing approval, Jacobi Bitcoin ETF investments will be facilitated through Sigma Asset Management Limited, the fund manager providing management and administration. Fund consultancy support will continue through Midshore Consulting.
Roy McGregor, chairman of Jacobi Asset Management said: “The Jacobi Bitcoin ETF will 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. This new ETF provides simple, secure, accessible investing into one of the world’s most exciting asset classes via some of the world’s leading regulated entities.”
The ETF was launched in May 2021 with a speciality in digital asset management, particularly the designing, issuing, and managing of institutional crypto products and funds connected to digital assets.
It meets regulatory standards by Christopher Jehan, head of fund architecture, and former chair of the Guernsey Investment & Funds Association (GIFA). Jehan led the team at Midshore Consulting in designing the Fund with legal work performed by Collas Crill led by Partner Wayne Atkinson and Senior Associate Gareth Morgan.