Jacobi Asset Management seeks FCA’s greenlight for Bitcoin-pegged ETF

abdelaziz Fathi

Crypto asset manager Jacobi Asset Management has received a regulatory go-ahead for an exchange-traded fund that seeks to track the price of Bitcoin (BTC) while satisfying the laws in the UK.

Bitcoin inventor is Australian scientist Dr Craig Wright!

The newly-launched firm said its “Jacobi Bitcoin ETF” is a centrally cleared crypto-backed financial instrument. The investment vehicle has reportedly won approval of the Financial Services Commission (GFSC) in Guernsey, a British crown dependency and island.

Fidelity’s cryptocurrency investment arm will provide custody for the ETF, which Jacobi plans to list on Cboe Europe, subject to the Financial Conduct Authority (FCA) approval. While Fidelity Digital Assets continues to be solely focused on institutional customers, this is one of the first custody service agreements that the fund manager has made public.

The open-ended fund will provide exposure to the underlying performance of Bitcoin without handling the assets directly. The exchange-traded fund is open for accredited investors only and applies a minimum subscription fee of $100,000.

If approved, Jacobi will be one of the first companies to offer the volatile crypto asset through mutual funds in Europe. Since most regulators restrict cryptocurrencies from directly being held in funds, such crypto-linked funds may be a workaround to offer bitcoin-based funds.

Jacobi Asset Management kicked off its operation in May 2021 and is headed by former Goldman Sachs investment banker Jamie Khurshid.

Commenting on the news, CEO Jamie Khurshid said: “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.”

“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,” added Roy McGregor, Chairman of Jacobi Asset Management and former CEO of Credit Suisse Channel Islands.

Regulators in the US are yet to approve an ETF that directly invests in cryptocurrencies, although at least a dozen issuers have filed for authorization for such a fund.

The approval of a regulated crypto derivative this year was looking far less likely this month, as the US regulators once again deferred their decision on whether to approve any of three proposed Bitcoin ETFs.

SEC Chair Gary Gensler said that he would be open to approving a bitcoin-futures ETF, but only under certain conditions. The revelation rankled some fund managers who were hopeful of a physically backed ETF, but regulated like a normal exchange-traded fund under a 1933 law.

Read this next

Digital Assets

BlockDAG’s Presale Achieves $9.9M: Aiming For A 5000-Fold ROI As Cardano’s Price Rises And Fantom Launches Sonic

Explore Cardano’s surge, Sonic’s efficiency, and why BlockDAG’s growth makes it the top crypto choice. A deep dive into the future of blockchain investments.

Digital Assets

US, UK probe $20 billion Tether transfers tied to Russian exchange.

U.S. and UK authorities are investigating the movement of $20 billion in the USD-pegged stablecoin tether (USDT) through Moscow-based exchange Garantex.

Digital Assets

BlockDAG Presale Raises $9.9M as Batch 5 Nears Sell-Out Amid Bonk’s Fluctuating Trading Volume & Spell’s Bullish Price

Explore BONK’s trading volume, SPELL’s market shifts, and why BlockDAG’s 10,000 ROI makes it an ideal crypto for savvy investors in 2024.

Digital Assets

Bybit expands into Europe amid regulatory scrutiny

Dubai-based cryptocurrency exchange Bybit is expanding its operations in Europe after encountering regulatory challenges in Hong Kong.

Digital Assets

Cathie Wood’s sponsored Bitcoin ETF sees historic $200 million inflows

The ARK 21Shares Bitcoin ETF (ARKB), co-sponsored by Cathie Wood’s ARK Invest, registered historic inflows exceeding $200 million on Wednesday, signaling a robust appetite among investors for Bitcoin-centric investments.

Digital Assets

Sam Bankman-Fried might see his 25-year sentence halved

Sam Bankman-Fried, the founder of the failed cryptocurrency exchange FTX, was sentenced to 25 years in federal prison by a Manhattan court on Thursday. This comes after he was convicted of defrauding customers and investors, with Judge Lewis Kaplan highlighting the potential future risks posed by Bankman-Fried.

Technical Analysis

EURJPY Technical Analysis Report 28 March, 2024

EURJPY currency pair under the bearish pressure after the pair reversed down from the major resistance level 164.25, which also stopped the sharp weekly uptrend at the end of last year,

Digital Assets

BlockDAG’s Presale Hits $9.9M, MultiversX & MINA Price Predictions Show Green

Read about BlockDAG’s promising $10 prediction and insights on MultiversX Price Prediction as MINA’s potential unfolds.

Digital Assets

Rockstar Co-Founder and All-star Line Up Join Advisory Board to Take Metacade into Post Beta Orbit

Metacade, the revolutionary Web3 gaming platform, prepares to streak out of beta with a slew of ground-breaking initiatives that will redefine the way blockchain games are developed.

<