London-headquartered digital specialist Jacobi Asset Management, led by former Goldman Sachs director Jamie Khurshid, has received approval from the Guernsey regulator to launch what it claims is the "world's first tier one" Bitcoin ETF.
It's move comes as Bitcoin reached near six-month highs above $61,000 at 10.30am Monday 18 October in anticipation of the listing of the first futures-based bitcoin exchange-traded funds (ETF) in the US,
If the Securities and Exchange Commission does not object, the ProShares Bitcoin Strategy ETF completes a 75-day period since the fund manager filed plans and could begin trading on 19 October.
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 is a centrally cleared crypto-backed financial instrument, authorised by the Guernsey Financial Services Commission and with custody provided by Fidelity Digital AssetsSM, it said in a statement on 15 October.
The firm said its intention is to list the Jacobi Bitcoin ETF on Cboe Europe, one of the largest pan-European equity exchanges, subject to Financial Conduct Authority (FCA) listing approval.
Launched in May 2021 to "shape the future of digital asset management", Jacobi said on its website that it brings together decades of expertise from Banking, Regulation, and Fintech to shape the future of digital asset management by designing, issuing and managing institutional crypto products and funds connected to digital assets.
Led by CEO Jamie Khurshid, a former Goldman Sachs investment banker and pioneer of regulatory transparency in financial markets, he started his career in the late 1990s in New York, where he worked on the equities trading floor of Credit Suisse. He was also an executive director of Goldman Sachs and the Royal Bank of Scotland.
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."
Roy McGregor, chairman of Jacobi Asset Management and former CEO of Credit Suisse Channel Islands, said: "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."
Chris Tyrer, head of Fidelity Digital AssetsSM in Europe, said: "Greater diversity of investor interest has created significant demand for additional vehicles for exposure to help provide broader access to digital asset markets. While safekeeping of assets is a top priority for investors and asset managers in all asset classes, the highly technical nature of digital assets places even more emphasis on this and underscores the need for institutional-grade custody solutions like ours."
The Jacobi Bitcoin ETF was developed to meet regulatory standards by Christopher Jehan, Head of Fund Architecture and former Chair of the Guernsey Investment & Funds Association (GIFA). Christopher led the team at Midshore Consulting in designing the Fund with legal work performed by Collas Crill led by Partner Wayne Atkinson and Senior Associate Gareth Morgan.
Prior to FCA listing approval, Jacobi Bitcoin ETF investments will be facilitated through Sigma Asset Management (Guernsey) Limited, the fund manager providing management and administration. Fund consultancy support will continue through Midshore Consulting.