Jacobi Asset Management says it has received regulatory approval from the Financial Conduct Authority (FCA) to launch a Bitcoin exchange-traded fund (ETF).
According to the new asset manager, the ETF will track Bitcoin prices while maintaining the regulatory requirements.
It added that Fidelity’s crypto investment section will be providing custody for the “Jacobi Bitcoin ETF”, which will be a centrally cleared crypto-backed financial instrument.
Jacobi says it will be listing the ETF on Cboe Europe if the FCA confirms its approval. Fidelity Digital Assets has always been known for its focus on institutional clients. However, the asset manager has decided to roll up its sleeves to handle custody service. This will make Jacoby custody service the first it has made public.
The ETF Will Provide ETF Exposure To Users
According to Jacobi Asset Manager, the new fund will offer more ETF exposure to the performance of Bitcoin (BTC) without dealing directly with the asset.
However, it will be applying a minimum subscription fee of $100,000 and is open for accredited investors. The brochure for the fund also explained that an EFT will carry a management fee of 1.5%.
Chief Executive Officer of Jacobi Asset Management, Jamie Khurshid, commented on the development.
“We are excited to be launching a new secure, transparent and accessible product to track the performance of Bitcoin,” he stated.
Khurshid added that the company’s goal is to make investments in the crypto sector less risky and more engaging to everyone. As a result, it wants to remove the counterparty risks of traditional funds and the technology risks of physical assets.
First Bitcoin ETF Approval In The US Is Imminent
This is coming when US investors are eagerly anticipating the first Bitcoin ETF approval from the Securities and Exchange Commission (SEC).
There has been an increased demand for crypto funds in recent times. Although the US market is yet to have its first crypto ETF, multiple European exchanges have started listing crypto ETFs for users in the jurisdictions.
According to a recent report, the SEC has been dragging its feet regarding the approval of a BTC ETF, but a first license in the sector is imminent.
