The Guernsey Financial Services Commission (GFSC) approved Guernsey’s first cryptocurrency fund on 15 October when it authorised Jacobi Asset Management to launch the world’s first Tier 1 Bitcoin exchange-traded fund (ETF).
The fund is available to institutional investors and will 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 will become a Tier 1 ETF.
The ETF was designed by Guernsey-based regulatory consultancy Midshore Consulting, led by Managing Director Christopher Jehan, also Head of Fund Architecture at Jacobi and former Chair of the Guernsey Investment & Funds Association.
The final product brings together both Guernsey and international service providers, ensuring that local requirements are met whilst allowing the flexibility of working with blue chip global firms experienced in this type of esoteric asset.
“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,” said Jehan. “It is also a great achievement to be able to show that Guernsey is open for financial services products involving crypto assets.