Jacobi granted approval for world’s first tier one Bitcoin ETF
Jacobi Asset Management has received approval to launch the world’s first tier one Bitcoin ETF.
The Jacobi Bitcoin ETF is a centrally cleared crypto-backed financial instrument, authorised by the Guernsey Financial Services Commission (GFSC) and with custody provided by Fidelity Digital Assets.
It is Jacobi’s intention to list the Jacobi Bitcoin ETF on Cboe Europe, one of the largest pan-European equity exchanges, subject to Financial Conduct Authority (FCA) listing approval.
Launched in May 2021 to shape the future of digital asset management, Jacobi brings together decades of expertise from banking, regulation, and fintech to shape the future of digital asset management by designing, issuing and managing institutional crypto products and funds connected to digital assets.
Jacobi is spearheaded by CEO Jamie Khurshid, a former Goldman Sachs investment banker and pioneer of regulatory transparency in financial markets. He was named by Financial News as one of the top 40 under 40 in European trading and technology and ranked in the ‘Exchange invest’ Top 1,000 most influential people in global financial markets. He has appointed a team with extensive financial services, regulatory and crypto asset expertise.
This week the market has been buzzing with anticipation of a US announcement of a crypto ETF. Other markets including Gibraltar and Switzerland are also weighing into the race with applications waiting for approval.
This announcement is a timely stance showing Guernsey as a progressive jurisdiction that supports the development of a regulated market for crypto assets.
“We are excited to be launching a new secure, transparent and accessible product to track the performance of Bitcoin,” said Mr Khurshid.
“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.
“We are proud to collaborate with Europe’s leading regulated firms for a truly tier 1 offering to service market demand, subject to the necessary regulated approval. This is an exciting moment for Europe as regulatory approval comes ahead of those waiting for a decision from the US Securities and Exchange Commission.”
Speaking exclusively to City PM, he added there was a significant amount of confusion in the market when it comes to exchange-traded crypto products.
“Not all products are the same from trusts, leveraged debt tracker funds, Exchange Traded Notes (ETN) and Exchange Traded Commodities (ETC) and Exchange Traded Products (ETP) many of these products are unregulated and involve large risk potential,” he added.
“The Jacobi Bitcoin ETF will be in a class of its own, fully regulated and built as an ecosystem of top tier providers.”
Roy McGregor, chairman of Jacobi Asset Management and former CEO of Credit Suisse Channel Islands, explained the Jacobi Bitcoin ETF will bring digital assets wholly into the mainstream investment infrastructure.
“It will provide investors with the opportunity to participate directly in physically-settled Bitcoin,” he said.
“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.”
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Jacobi Bitcoin ETF investors will benefit from the security of Fidelity Digital Assets’ enterprise-grade custody and execution services, designed to enable institutional investors to safely secure, trade and support investments in digital assets.
Chris Tyrer, Head of Fidelity Digital Assets in Europe, commented: “Greater diversity of investor interest has created significant demand for additional vehicles for exposure to help provide broader access to digital asset markets. While safekeeping of assets is a top priority for investors and asset managers in all asset classes, the highly technical nature of digital assets places even more emphasis on this and underscores the need for institutional-grade custody solutions like ours.”
The Jacobi Bitcoin ETF was developed to meet regulatory standards by Christopher Jehan, Head of Fund Architecture and former Chair of the Guernsey Investment & Funds Association (GIFA). Mr 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.
Prior to FCA listing approval, Jacobi Bitcoin ETF investments will be facilitated through Sigma Asset Management (Guernsey) Limited (“Sigma”), the fund manager providing management and administration. Fund consultancy support will continue through Midshore Consulting.
