GFSC authorises first cryptocurrency fund

GUERNSEY’S first approved cryptocurrency fund – available to institutional investors – has been unveiled.

Jacobi Bitcoin ETF was authorised by the Guernsey Financial Services Commission this month and is a sub-fund of Jacobi Investment Funds PCC.

The fund will also seek approval from the Financial Conduct Authority in the UK to list on the UK-based arm of the Chicago Board Options Exchange, at which point it would become the world’s first Tier 1 Bitcoin Exchange Traded Fund.

Guernsey-based Midshore Consulting has worked with Jacobi Asset Management since early 2021 to design and develop the fund and its operating model, ensuring strict Guernsey regulatory requirements were met.

Midshore said that the final product brought together both Guernsey and international service providers, ensuring that local requirements were met while allowing the flexibility of working with global firms experienced in this type of asset.

‘Having worked alongside Jacobi since the start of the year we are really happy with having reached this stage of regulatory approval,’ said Christopher Jehan, managing director of Midshore.

Christopher Jehan, president of the CISI Guernsey branch.. (30104291)

‘This project required early and frequent engagement with the GFSC and development of a key controls framework to ensure that regulatory requirements were considered at an early stage and kept in mind throughout the project.

‘It is also a great achievement to be able to show that Guernsey is open for financial services products involving crypto assets.’

Jamie Khurshid, chief executive officer of Jacobi, said it was 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,’ he added.

‘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.’

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