Jacobi Asset Management, a London-based multi-asset investment platform, has received approval from the Financial Services Commission (GFSC) to launch Bitcoin (BTC) Exchange-Traded Fund (ETF).
Speaking to Cointelegraph, Jamie Khurshid, CEO of Jacobi Asset Management, said regulatory precision helps corporations and organizations to invest in Bitcoin safely without all the risks associated with technology and competitors.
According to an official statement, the Jacobi Bitcoin ETF is a centrally cleared, crypto-backed financial instrument backed by Bitcoin custody provided by Fidelity Digital Assets.
Approval from the GFSC allows investors to trade Jacobi Bitcoin ETFs in the traditional cryptocurrency stock market “across all jurisdictions and with similar restrictions outside the United States.”
Khurshid, a former Goldman Sachs Investment Banker, noted that the funds are “centrally cleared with securities held in the Central Securities Depository (CSD)”, a process known to traditional theoretical asset managers. Addressing investors across the authorized jurisdiction, Khurshid said:
“We are setting up feeder funds around the world that will only invest in Jacobi Bitcoin ETFs to meet their domestic demand.”
Moreover, the company wants to list Jacobie Bitcoin ETFs on the Cboe Europe Equity Exchange, which has not yet received listing approval from the Financial Conduct Authority (FCA), the UK’s financial regulator.
Related: Controlling crypto can give it a ‘hello’ of legitimacy, says the UK Watchdog
In September, Charles Randall, chair of the FCA and Payments Systems Regulator, expressed concern about the lack of risk awareness among crypto investors in a written speech for the Cambridge International Symposium on Economic Crime.
Randall highlights the role of influential people like Kim Kardashian who promotes unverified tokens on Instagram, which he says could potentially confuse unsuspecting investors. “Why should we handle purely speculative digital tokens? Will FCA participation give them a ‘hello effect’ that raises unrealistic consumer protection expectations?
On the other hand, the United States Securities and Exchange Commission has adopted a proactive approach to allowing ETFs to be offered on traditional cryptocurrency exchanges. Crypto Financial Services Company Bucket will become the last company listed on the New York Stock Exchange, under the ticker symbol “BKKT”.