Photo: 3iQ Corp / Twitter
3iQ Corp (3iQ), Canadian investment fund manager received approval from the Ontario Securities Commission (OSC) to launch a closed-end Bitcoin fund to retail investors. OSC panel has not placed any conditions on the Bitcoin fund, such as restricting the entities with whom the fund could purchase and sell Bitcoin, and addressing insurance requirements for the fund’s bitcoin held in wallets.
3iQ has taken reasonable steps to mitigate the risks associated with the fund and the Bitcoin markets through the structure of the fund and the use of professional and qualified third-party service providers. 3iQ has said that custody, audit, purchases and pricing would be secure and compliant with existing regulations.
The net asset value of Bitcoin Fund’s units would be published daily and would reflect the changing value of the bitcoin held by the fund. Retail investors would be able to buy and sell the Bitcoin fund through traditional and discount brokers, and the investments would be eligible for registered retirement savings plans (RRSPs) and tax-free savings accounts.
Gemini Trust Company, a well-known New York-based crypto exchange and trust firm, will fulfill the functions of the custodian of the Bitcoins in the fund. Gemini is required to store the virtual assets in a trusted and compliant method to manage the fund. 3iQ has also partnered with asset manager VanEck to develop an innovative Bitcoin benchmark from VanEck’s MV Index Solutions, a regulated index provider in developing cryptocurrency indices and data series.
3iQ currently manages two digital asset funds including the 3iQ Bitcoin Trust and the 3iQ Global Cryptoasset Fund, two private investment funds which hold Bitcoin only and Bitcoin, Ether and Litecoin respectively. These funds are eligible for investment by accredited investors in Canada or in reliance on other exemptions from the prospectus requirement.
3iQ expects to syndicate the offering as soon as possible and hopes to have the fund listing and trading later this quarter. A listed fund will gain more traction from a wider retail investor audience and further validate the crypto investment while providing a more secure environment.
