Canadian based investment firm, 3iQ, is set to launch a Bitcoin fund after approval by Ontario Securities Commission (OSC). The Bitcoin fund is closed-ended and will soon trade within Canada’s financial markets through the Ontario Stock Exchange.
The move is set to be finalized within the remaining part of Q4 in 2019. 3iQ’s CEO, Fred Pye, said that they had been working with the OSC in the past three years to get this far;
1/ “We were pleased to work closely with 3iQ in both the development of the index & in working with the regulators to address their concerns. We are obviously impressed with the determination & persistence of our Canadian partners.” CEO @JanvanEck3 https://t.co/wfqOpv3HnL
— Gabor Gurbacs (@gaborgurbacs) October 30, 2019
Mr. Pye added that they have addressed audit, custodial and pricing issues which may have been a concern to clientele and regulators. The firm’s proposal had been rejected in February 2019 which sent them back to the drawing board. However, the OSC director will now issue a final receipt to allow 3iQ refile its prospectus.
Gemini to Offer Custodial Services
New York-based digital asset exchange, Gemini, is among the 3iQ’s partners in the Bitcoin fund project. The exchange will act as an appointed custodian for the BTC funds held by 3iQ on behalf of its investors. Gemini’s experience within the crypto space is a big plus given they have been operational for the past five years.
3iQ will also work with VanEck, an asset manager, whose Bitcoin and other crypto benchmarks are regulated. The asset manager had earlier applied to launch an Exchange Traded fund but withdrew its request at the beginning of 2019.
Given the current atmosphere in Canada’s crypto space, 3iQ might leverage the opportunity to its advantage. Canada’s Central Bank is currently looking at the viability of launching its own token to counter the threat by existing digital assets.