The Guernsey Financial Services Commission (GFSC) has granted permission to Jacobi Asset Management, a London-based multi-asset investing platform, to establish Bitcoin (BTC) exchange-traded funds (ETF).
Jamie Khurshid, the chief executive officer of Jacobi Asset Management, opined that that legal endorsement allows companies and institutions to participate in Bitcoin investments without having to worry about the risks connected with the technology and market participants.
Officially, the Jacobi Bitcoin ETF is a centrally cleared, crypto-backed financial product that is backed by Bitcoin safekeeping by Fidelity Digital Assets, as per the company’s website.
The Greenwich Financial Services Commission’s clearance enables investors to trade Jacobi Bitcoin ETFs on conventional stock exchanges in “all countries outside of the United States and those jurisdictions with comparable limitations.”
An ex-investment banker at Goldman Sachs, Khurshid, stressed that the funds are “centrally cleared with assets housed at the top central securities depository (CSD),” a procedure that is known to conventional asset managers. Khurshid addressed investors from all of the approved countries, saying, “We have feeder funds being established across the globe that will be investing exclusively in Jacobi Bitcoin ETF to serve their local requirement.”
As a result of its plans, Cboe Europe wants to offer the Jacobi Bitcoin ETF on its stock exchange, which has not yet been approved for listing by the Financial Conduct Authority (FCA), a financial regulator in the United Kingdom. In a speech prepared for the Cambridge International Symposium on Economic Crime on Sept. 6, Charles Randell, head of the Financial Conduct Authority and the Payments Systems Regulator, expressed worry about the risk aversion knowledge among cryptocurrency investors.
Randell emphasized the significance of celebrities like Kim Kardashian in pushing unconfirmed tokens on social media, which, in his opinion, has the ability to mislead unsophisticated investors into making bad investments.
“Why should we control digital assets that are simply speculative? Do they anticipate a ‘halo effect’ from the participation of the FCA that will lead to false notions of consumer protection?”
The Securities and Exchange Commission of the United States, on the contrary, has adopted a proactive strategy in order to enable ETF listings on conventional exchanges to proceed. Bakkt, a cryptocurrency financial services business, will become the newest company toget listed on the New York Stock Exchange, with “BKKT” as the ticker symbol.
