Bitcoin Boosted by ETF Expectations
Posted by Colin Lambert. Last updated: October 17, 2021
While central bankers and other regulators may express concern over the true value and opportunity of Bicoin, financial markets players remain happy to shrug them off, jumping on positive reports of SEC approval for a Bitcoin ETF to send the cryptocurrency through $60,000 to above $62,000.
Bloomberg News has reported the SEC is preparing to authorise the first Bitcoin ETF in the US, however a Channel Islands-based firm has slipped in front by announcing regulatory approval for what is claims is the world’s first “tier one” Bitcoin ETF.
Jacobi Asset Management in Guernsey has received approval for the centrally-cleared crypto-backed ETF from the Guernsey Financial Services Commission. Custody for the new ETF is provided by Fidelity Digital Assets and, subject to UK Financial Conduct Authority (FCA) approval, it will be listed on Cboe Europe.
“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,” says Jacobi Asset Management CEO Jamie Khurshid. “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 US Securities and Exchange Commission.”
Roy McGregor, chairman of Jacobi Asset Management, adds, “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.”
Prior to FCA listing approval, Jacobi says investments will be facilitated through Sigma Asset Management (Guernsey), the fund manager providing management and administration.
“Greater diversity of investor interest has created significant demand for additional vehicles for exposure to help provide broader access to digital asset markets,” says Chris Tyrer, head of Fidelity Digital Assets. “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.”