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Canadian Investment firm moves closer to launching bitcoin fund

Kitco News

(Kitco News) - Cryptocurrencies are taking another step into the mainstream as one Canadian company continues to move forward with its plans to list a bitcoin fund on a major stock exchange.

Canadian investment fund manager, 3iQ Corp, announced at the end of October that it received a favorable ruling from its public hearing before the Ontario Securities Commission (OSC).

“The OSC panel has directed the OSC Director to issue a receipt for a final prospectus of the Fund, a closed-end bitcoin fund that is expected to be listed for trading on a major Canadian stock exchange,” the company said in a press release.

The company said that it has been actively working with the OSC for the last three years to develop its cryptocurrency investment product.

“We have addressed the questions of pricing, custody, audit, and public interest issues in a regulated investment fund. We intend to refile the prospectus as soon as possible as the next step in bringing this ground breaking fund to investors,” Fred Pye, president & CEO of 3iQ, said in the press release.

“We look forward to offering retail investors exposure to this exciting new asset class within registered and traditional investment accounts,” added Howard Atkinson, chairman of 3iQ.

During its three-year journey, the company has worked with leading players in the digital space, including VanEck’s MV Index Solutions, which helped develop a bitcoin benchmark.

“We were pleased to work closely with 3iQ in both the development of the index and in working with the regulators to address their concerns.  We are obviously impressed with the determination and persistence of our Canadian partners,” said Jan van Eck, CEO of VanEck, said in the press release.

Gemini Trust Company LLC, a New York based cryptocurrency exchange and trust company, will act as custodian of the bitcoin in the fund, the company said.

The proposed new fund comes almost two years after the CME Group launched a cash settled bitcoin futures contract, which many analysts saw as the biggest step taken to make the cryptocurrency a mainstream investment asset.

The latest market news comes as bitcoin continues to struggle to find momentum after falling below $8,000, hitting a six-month low. Bitcoin last traded at $7,629 a token.

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.