Canada: Bitcoin (BTC) Fund 3iQ Scores Listing on Toronto Stock Exchange

Canadian digital assets investment firm 3iQ has announced the listing of its Bitcoin Fund on the Toronto Stock Exchange following the completion of its initial public offering.

3iQ Bitcoin Fund Finally Completes IPO

According to a press release on Thursday (April 9, 2020), 3iQ merged with 3iQ Bitcoin Trust, with the Bitcoin Fund having an outstanding 1,491,800 Class A shares valued at approximately $14 million. The Class A units with the symbol QBTC.U. began trading on Canada’s largest stock exchange and targets different investors. 

An excerpt from the announcement reads:

“The Fund has granted the Agents an option to purchase up to an additional 15% of the Class A Units issued on the closing date of the Offering, on the same terms and conditions, exercisable in whole or in part, for a period of 30 days from the date of this news release”.

As previously reported by BTCManager in November 2019, the Canadian investment firm initially filed for a Bitcoin Fund IPO. The IPO comprises two units: Class A and Class F, with only Class A units currently listed on the Toronto Stock Exchange.

Gemini’s Tyler Winklevoss commented on the latest listing said in a tweet:

'The Bitcoin Fund' just launched on the Toronto Stock Exchange. This is the first public bitcoin fund listed on a major global stock exchange. Proud that @Gemini was selected as the custodian for this fund. Congrats to @3iq_corp for making history! https://t.co/YtjFqSh6K5

— Tyler Winklevoss (@tyler) April 9, 2020

Also, the press release stated that the IPO was led by Canaccord Genuity Corp. and Echelon Wealth Partners Inc. Other participants were Mackie Research Capital, Leede Jones Gable Inc., and PI Financial Corp.

Furthermore, the 3iQ will act as Bitcoin Fund’s portfolio and investment manager, while Gemini will be the Fund’s custodian. The units issued by 3iQ will expose holders to bitcoin and BTC’s daily price movement against the U.S. dollar, along with “the opportunity for long-term capital appreciation”.

Mixed Bag for Crypto Investment Funds

Different crypto funds have sprung up over time, with some thriving and others facing difficulties and eventually clamping up.

The world’s largest crypto investment firm, Grayscale, had an explosive 2019, recording investment worth $607 million in 2019 alone, which is more than investment acquired from 2013 to 2018. Also, Grayscale Bitcoin Trust received a license from the U.S. Securities and Exchange Commission (SEC)

However, In Hong Kong, crypto funds are not particularly flourishing, despite the positive regulation set up by the country’s regulatory body, the Securities and Futures Commission (SFC) to enable investment managers to invest in crypto assets.

As of 2019, only one crypto fund, Diginex, managed to scale through the SFC’s regulatory hurdles. Reasons for the lack of participation range from the absence of application to unanswered application.

Also, BTCManager reported in December 2019 about the rate at which crypto hedge funds were shutting down.