A new Bitcoin exchange-traded fund (ETF) has been permitted in Europe. The event came before U.S. traders received their first Bitcoin futures-linked EFT from the Securities and Exchange Commission (SEC) last week on Friday afternoon.
On last Friday, October 15, Jacobi Asset management agency in Guernsey, an English crown island, introduced that it got approval from regulators to launch a physically-backed Bitcoin ETF.
The Guernsey Financial Services Commission gave Jacobi Asset management approval to launch what it described because the world’s first “Tier 1” Bitcoin Exchange-Traded Fund (ETF).
The founder and CEO of Jacobi, Jamie Khurshid, a former Goldman Sachs investment banker, talked about the development and said:
“We’re excited to be launching a new secure, transparent, and accessible product to trace the efficiency of Bitcoin. We’re a de-risking funding in crypto by eradicating the technology risk related to the physical asset and counterparty threat related to conventional funds or tracker merchandise which might be unregulated leverage debt devices.
“We’re proud to collaborate with Europe’s reading regulated corporations for a very tier 1. Providing to service market demand, topic to the mandatory regulated approval, that is an exciting moment for Europe as regulatory approval comes forward of these ready for a call from the U.S. Securities and Alternate Fee,” Khurshid added.
Khurshid further defined that “Tier one” means the ecosystem of Tier 1 partners. “We’re within the technique of listing on a Tier 1 trade, and all the corporations supporting the fund are top tier,” he stated.
Jacobi acknowledged that it plans to list the fund on the pan-European fairness trade Cboe Europe, pending itemizing approval from the U.K.’s Financial Conduct Authority (FCA).
Fidelity digital assets will present custody for the ETF, which Jacobi describes as a fully regulated crypto-backed financial instrument.
Jacobi Bitcoin investors will profit from the security of Fidelity Digital Assets, designed to allow its institutional investors to safely secure, commerce and help investments in digital assets.
Launched in May 2021, Jacobi intends to shape the future of digital asset management by bringing together experience from banking, regulation, and Fintech who helps design, concern, and handle institutional crypto products and funds related to digital assets.
The Jacobi Bitcoin ETF has a $100,000 minimum and is just open to establishments when it launches. The ETF carries a 15% management fee.
Jacobi disclosed that its workforce has been working on securing regulatory approval for more than 9 months. The firm further stated the successful approval now makes the fund the first European ETF wholly invested in Bitcoin, becoming a member of solely two others worldwide in Brazil and Canada.
Whereas Europe has several firms (such as CoinShares) offering Exchange-Traded Products (ETPs), Jacobi stated that its Bitcoin ETF’s regulated standing would set it apart from other products available in the market.
Within the FAQ section of its website, Jacobi states that ETFs differentiate from ETPs, reminiscent of exchange-traded commodities (ETCs) and exchange-traded notes (ETNs) in a number of features, including liquidity, regulation, settlement, and structure.
“Not one of the ETPs in Europe are regulated because they’re all ETNs. The Jacobi Bitcoin ETF would be the only regulated crypto product and is approved as an ETF,” Khurshid highlighted.
Source: Blockchain News