3iQ can now offer retail investors in Canada a publicly traded and regulated Bitcoin (BTC) Fund.
In its latest press release, the investment management firm announced that it has secured primary approval to launch a crypto fund on the Ontario Stock Exchange before the year ends.
It was an interesting turnaround as the Canada-based company’s proposal was denied by the country’s regulators back in February. However, 3iQ appealed the decision and was later granted approval by the Ontario Securities Commission (OSC).
Fred Pye on the Topic
Fred Pye, the Chief Executive of 3iQ, said that they have been working closely with the Investment Funds and Structured Products Branch of the OSC for more than three years. He explained that they wanted to develop an investment plan with the aim of letting retail investors invest in Bitcoin via a regulated and listed fund.
Pye claimed they’ve successfully addressed questions regarding audit, custody, public interest, and pricing issues. He also said that the company intends tor refile their prospectus immediately. It’s the next step they need to take to bring the Bitcoin Fund closer to investors.
31Q is touting its Bitcoin Fund as the first key exchange-listed and regulated BTC fund in the world. While other companies have rolled-out similar products, they were either unregulated or listed on smaller exchanges.
The company also enjoyed the support of VanEck, one of its partners in this endeavor. The company’s MV Index Solutions helped developed a new bitcoin benchmark for 3iQ.
Pye, a former Senior VP of Fidelity Investments Canada, also shared that retail investors could purchase and sell the BTC fund via discount and conventional brokers. The investments are also eligible for tax-free accounts and retirement savings plans registered in Canada.
Gemini To Act as Custodian
3iQ has selected crypto exchange platform Gemini to act as custodian to the fund’s Bitcoins. 3iQ’s Chief Investment Officer Shaun Cumby said the support they’ve received from the New York-based company has aided in making their Bitcoin Fund a reality.
Gemini founder and CEO Cameron Winklevoss also added his assurance that they are mandated to store digital assets in a safe, reliable, and compliant manner. He added that they will use those same principles to assist 3iQ in managing the Bitcoin Fund.
Canada has been steadily exploring digital currency. There have been reports that the Bank of Canada is looking into the challenges and advantages of having their own cryptocurrency. The country’s central bank is said to believe that the country having a public central bank virtual currency could solve the direct threat that crypto apparently poses.