All good: Bitcoin Fund to proceed with IPO

All good: Bitcoin Fund to proceed with IPO

  • Canadian regulator green-lights Bitcoin Fund IPO
  • The company’s approval came after a public hearing and a favourable ruling
  • The sale will proceed once the regulator issues a receipt for the IPO’s final prospectus

Investment fund manager 3IQ Corp on Thursday announced it had filed The Bitcoin Fund’s Initial Public Offering (IPO) prospectus.

The Ontario Securities Commission (OSC) received the prospectus dated Nov. 27 having previously rejected it. Details of the filing indicate that Bitcoin Fund plans to issue two sets of units each priced at $10.

According to the entity’s documents, Bitcoin Fund is a crypto-focused fund manager established under Ontario’s laws, adding that “the units will be an eligible qualified investment for registered investment accounts.”

Details of the announcement stated that the fund’s core objective is to help investors take advantage of Bitcoin as an asset and its daily price movements against major currencies.

3IQ, which manages two other private digital asset funds for Canadian investors was founded in 2012, and it will be Bitcoin Fund’s underwriter and portfolio manager. For a while now, 31Q has been working hard to see the first crypto-based company go public.

Bitcoin Fund, through 31Q, had originally filed a prospectus with OSC’s Investment Funds & Structures Projects branch (IFSP) in October 2018 but the regulators raised a number of concerns about the listing, saying that the IPO wasn’t in Canadian’s public interest. As a result, the IFSP director dismissed the IPO early this year.

But the company decided to repeal the decision that saw OSC Commissioner Lawrence P. Haber rule that the concerns “do not warrant denying a receipt for The Bitcoin Fund’s prospectus.”

Commission Haber based his decision on the fact that securities regulators’ role is not to approve or disapprove underlying investments being offered to the general public, in this case, Bitcoin. He further added that “there is sufficient evidence of real volume and real trading in bitcoin on registered exchanges in large dollar size.”

After the ruling, the Commissioner ordered the IFSP director to issue Bitcoin Fund with a receipt for its prospectus unless new compelling evidence emerged warranting a rejection.

A few weeks later, the company confirmed that the regulator had issued a receipt for its prospectus. However, the fund underwriters stated that in accordance with the ruling by Commissioner Haber, “there are remaining steps for completion before a final offering prospectus can be receipted” including furnishing the regulator with more details on its underwriters as well as the pricing of the IPO.

By Damian Wood
As an experienced trader, I work for myself managing my own small portfolio and also contributing on several investment news sites. I mix my passion for the industry and journalism to bring my readers informative and trustworthy articles.

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