UK-based Jacobi Asset Management claims to have received approval for the launch of what the firm is calling “the World’s First Tier One Bitcoin ETF.”
According to the company’s press release, 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 AssetsSM.” Jacobi intends to list the Jacobi Bitcoin ETF on Cboe Europe, which one of the largest pan-European equity exchanges, pending listing approval from the UK’s financial regulator Financial Conduct Authority (FCA).
Jacobi, which was launched in May 2011, says its mission is “to champion a world where investors can simply and securely embrace the exciting opportunities of the digital economy without the associated counterparty and technology risks.”
It also mentions that its Bitcoin ETF is “Tjust the beginning” and that it intends to “launch additional crypto-backed funds.”
Jacobi CEO Jamie Khurshid, who is a former Goldman Sachs investment banker, had this to say:
“We are excited to be launching a new secure, transparent and accessible product to track the performance of Bitcoin. 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 U.S. Securities and Exchange Commission.“
And Roy McGregor, Chairman of Jacobi Asset Management, commented:
“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.“
A Jacobi spokesperson explained to The Block what the firm means by the term “Tier 1”:
“Tier one is a term used by Jacobi to describe the ecosystem of Tier 1 partner. We are in the process of listing on a Tier 1 exchange and all the firms supporting the fund are top tier.“
The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, or other advice. Investing in or trading cryptoassets comes with a risk of financial loss.