Guernsey regulator approves Jacobi Asset Management’s Bitcoin ETF launch

The Guernsey Financial Services Commission (GFSC) has approved the introduction of Bitcoin exchange-traded funds (ETFs) by Jacobi Asset Management, a London-based multi-asset investing platform. According to a press release from Finance Magnates, the fund will be known as the Jacobi Bitcoin ETF and will be listed on Cboe Europe, subject to approval from the Financial Conduct Authority (FCA). For custody purposes, the asset management firm has teamed with Fidelity Digital Assets.

For more than nine months, the Jacobi Asset Management team sought to obtain regulatory approval. The new fund would be “completely regulated” and the “first fund in Europe to invest 100% of its funds in bitcoin.” Only institutional investors and expert traders will be able to invest in the new fund, with a $100,000 minimum investment. According to an official announcement, the Jacobi Bitcoin ETF is a centrally cleared bitcoin-backed financial product from Fidelity Digital Assets. Indeed, the GFSC certification permits investors to trade Jacobi Bitcoin ETFs on all stock exchanges in all jurisdictions other than the United States and nations with similar legal restrictions. In addition, the company aims to launch the Jacobi Bitcoin ETF on the Cboe Europe equity exchange. Besides, the Financial Conduct Authority (FCA), a financial regulator in the United Kingdom, has yet to provide the firm listing approval.

Let us remember what is bitcoin EFT in the crypto economy sector. An ETF (ETF) is a type of index fund whose shares are traded on a stock exchange. Consequently, an ETF is a sort of instrument functioning as a certificate for a portfolio of stocks, bonds, exchange-traded commodities, or cryptocurrencies. This security’s price is determined by an index based on specific underlying assets. ETFs, unlike investment funds, we can exchange in the same way that stocks in the stock market.

Thus, ETF shares can be traded throughout the trading day, and their prices fluctuate depending on the supply and demand ratio and market participants’ activities. We should also mention that shares of ETFs are typically more liquid than units of investment funds. Moreover, ETFs are usually available in the country where the fund was established. Exchange-traded investment funds, on the other hand, can be exchanged on foreign exchanges. Margin trading is also available in the case of ETFs.

In conclusion, there is a widespread belief that bitcoin-ETFs will undoubtedly draw big investments in the cryptocurrency market, contributing to the rise of its capitalization as well as the widespread adoption of new assets. ETFs are a relatively well-known tool in the world of traditional finance.

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bit4you is an european crypto exchange platform. We are facilitating the transition between crypto currencies and traditional currencies such as euro.