Canadian investment manager completes its crypto offering

  • Ali Raza
  • 27th June, 12:59
Canadian investment manager completes its crypto offering
  • Canadian investment management company, 3iQ, recently announced the end of its BTF Fund offering.
  • The offering sold Class A and Class F units, selling them to institutions for $11.7.
  • The company itself acted as the investment and portfolio manager, but its custodian was Gemini Trust.

The crypto market in Canada continues to develop, and plenty of new products have emerged in the country recently. The digital currency market is finally starting to mix with the world of traditional finance. This was seen when the mining firm Hut 8 received approval for listing on Canada’s stock exchange, even though it never held a traditional IPO.

Another example is 3iQ Corp, which recently announced the end of its Bitcoin Fund offering.

3iQ announces the end of the sale

3iQ Corp, an investment manager from Toronto, recently released a statement about its $10 million offerings in its Bitcoin Fund. The offering included Class A and Class F units, while the price sat at $11.71.

The initial price of both Class’ units was $10, and the fund was closed-end. The company also decided that it won’t introduce minimum purchases in order to try and attract more buyers.

The units were trading on the Toronto Stock Exchange, but despite this, their value was denominated in USD.

The company, which previously became a partner with VanEck, used its regulated index provider, MV Index Solutions to create a Bitcoin benchmark.

It is also worth noting that 3iQ also manages two private investment funds — 3iQ Global Cryptoasset Fund and 3iQ Bitcoin Trust. Both were initially only available to Canadian institutional investors, and they started as a private placement.

However, the asset manager then decided to announce their merger, which led to the distribution of Class B units.

By purchasing the asset manager’s exchange-traded products, any stakeholder would get directly exposed to the value of Bitcoin. Meanwhile, the fund also plans to use a long-term holding strategy for achieving capital appreciation.

3iQ also needed to look into numerous aspects, such as public interest, custody, pricing, and an audit, in order to get regulatory approval, as reported in late 2019. The company acts as the fund’s portfolio and investment manager, but it uses the Winklevoss Twins’ New York-based Gemini Trust as the custodian of its Bitcoin.

By Ali Raza
A journalist, with experience in web journalism and marketing. Ali holds a master's degree in finance and enjoys writing about cryptocurrencies and fintech. Ali’s work has been published on a number of cryptocurrency publications. Raza is the co-founder of 5Gist.com, too, a site dedicated to educating people on 5G technology.
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