3iQ Corp.’s Bitcoin Fund Manager Seeks Public Ontario Securities Commission (OSC) Hearing
The 3iQ Has Asked The OSC To Go Ahead And Review The Decision They Made On The Bitcoin Fund
One of the fund managers that had been denied the regulatory approval for their Bitcoin Investment fund has just gone ahead to ask the Ontario Securities Commissions, OSC, to have a public hearing so that they could review the decision they have just made.
More On The Decisions Made By The OSC
The OSC went ahead to deny the receipt of the prospectus of the 3iQ Corp Bitcoin Fund that is Toronto based last month. They ruled that the prospectus will not be at the public interest if they approved a fund that is based on Bitcoin in the midst of concerns on the current suitability of the crypto coins as a mode of investment.
The decision that was made by the OSC also went ahead to point out the lack of proper regulation for the current crypto assets, together with several concerns on the security, liquidity, and custody.
As a result, the 3iQ has gone ahead to seek orders that are setting aside the decision that has been made by the OSC. In the application that was made the 3iQ goes ahead to argue that the regulators have set stricter standards for their fund when looking at the liquidity, valuation, and custody, as compared to the other investment funds within the market.
The company went on to argue that it is in the public interest to ensure they allow the advisors together with the retail investors to gain the needed exposure to the Bitcoin through a well-regulated fund, instead of having the same individuals buying it in an unregulated market.
“The OSC’s decision fails to promote efficient capital markets and confidence in capital markets because it prevents retail investors from accessing bitcoin through a regulated, professionally managed fund structure,” 3iQ said in its application, adding, “The fund is not intended to be a complete investment program for any investor, but rather a small allocation within an investment portfolio to provide diversification to an uncorrelated asset class.”
Furthermore, the firm has gone on to say that there initial public offering will actually be complete as a syndicate of the current dealers that are regulated by the IIROC, Investment Industry Regulatory Organization of Canada.
Thus, the company has taken the necessary steps to ensure that the investors will benefit from the investment advice being offered by the regulated investment professionals. This is when we consider the risk profile that has been associated with the investments taking place with Bitcoin, and also analyses whether the particular asset has actually been made suitable for the current portfolio.
With the application in place, it has also been able to reveal that the 3iQ was actually expecting to have a public hearing that will be able to debate the merits of the regulators actual approving the Bitcoin-based investment fund when they had filed their prospectus.
The OSC went ahead to advise the 3iQ platform that the next step in obtaining the needed receipt for the prospectus they have proposed is to go ahead and publicly file the prospectus. They should submit it to be given the opportunity to be heard in front of a panel of the OSC Commissioners, at which the refusal of the prospectus will be publicly debated.
With the hearing request, it makes it a significant step for Canada and Ontario to shoe the needed leadership and go ahead to address the global concerns that are regarding the custody and regulations that are surrounding the crypto assets.