Canadian investment fund manager 3iQ Corp has filed preliminary prospectus to float its Bitcoin Fund through an initial public offering on the Toronto Stock Exchange, a move aimed at broadening its investor base.
3iQ already manages two private investment funds – 3iQ Bitcoin Trust and the 3iQ Global Cryptoasset Fund – which started as a private placement available only to accredited and institutional investors in Canada.
With the filing, the company hopes to attract retail investors to its dedicated bitcoin fund. Further, if deemed effective, the listing would allow investors who previously purchased 3iQ shares in a private placement to sell their shares in the market.
The official announcement revealed that 3iQ’s closed-end bitcoin fund would offer Class A and Class F units at $10 each. To induce more and more buyers, there is no limit on minimum purchases.
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Gemini fulfills the custodian functions
The proposed exchange-traded product would provide stockholders with direct exposure to bitcoin value. The non-redeemable investment fund also aims to achieve capital appreciation through a long-term holding strategy.
Following an appeal, 3iQ has previously secured the approval from Ontario Securities Commission to offer its Bitcoin fund to Canadian investors.
To lend support to the fund, 3iQ said it addressed the questions of pricing, custody, audit, and public interest issues in a regulated investment fund. It will act as the investment and portfolio manager of the fund, while New York-based crypto exchange Gemini Trust will fulfill the functions of the custodian of the bitcoins held in the fund.
3iQ also partnered with asset manager VanEck to develop a Bitcoin benchmark in partnership with VanEck’s MV Index Solutions, a regulated index provider in developing cryptocurrency indices and data series.
Crypto-related financial products continue to hit the Canadian market, with Bitcoin mining company Hut 8 was conditionally approved to be listed on the country’s principal stock exchange. The company, however, hasn’t gone public through a traditional route but floated on the Canadian bourse through its “TSX Sandbox,” an initiative that provides an alternative path to the exchange listing for certain qualifying companies.