London-based Jacobi Asset Management, a multi-asset investment platform, has received approval from the Guernsey Financial Services Commission (GFSC) to launch the Bitcoin Trading Fund (BTC) (ETF).
In a speech to Cointelegraph, Jakobi Asset Management CEO Jamie Khurshid said that clarity of regulation helps companies and organizations to safely engage in bitcoin investments without any risk associated with technology and counterparties.
According to the official statement, the Jacobi Bitcoin ETF is a cryptocurrency-backed, centrally open financial instrument backed by bitcoin storage provided by Fidelity Digital Assets.
The GFSC approval allows investors to trade Jacobi Bitcoin ETFs on traditional stock markets “in all jurisdictions outside of America and with other similar restrictions.”
Khurshid, also a former investment banker at Goldman Sachs, stressed that funds are “centralized with securities at the leading Central Securities Depository (CSD)” – a process known to traditional asset managers. Khurshid told investors in approved jurisdictions:
“We have created financial funds around the world that will only invest in Jacobi Bitcoin ETFs to meet local demand.”
In addition, the company intends to list on the Cboe Europe ETF Jacobi Bitcoin ETF, which has not yet been approved for listing by the Financial Conduct Authority (FCA), the UK financial regulator.
On the subject: Regulation of cryptocurrency can give it an “aura” of legitimacy, says UK Watchdog.
In September, Charles Rundle, FCA president and payments regulator, in a written speech at the Cambridge International Symposium on Economic Crimes, expressed concern about the lack of risk awareness among crypto investors.
Randle highlighted the role of influencers like Kim Kardashian in marketing unconfirmed Instagram codes, which he says could mislead uninformed investors. “Why should we regulate purely speculative digital tokens? Will FCA participation give them a “halo effect” that creates unrealistic expectations for consumer protection? ”
On the other hand, the US Securities and Exchange Commission has taken a proactive approach to permitting ETF offers on traditional exchanges. Crypto finance company Bakkt will be the last company to be listed on the New York Stock Exchange under the ticker BKKT.