Canadian Crypto Exchange-Traded Fund Completes $10 Million Offering

The 3iQ’s closed-end bitcoin fund offered Class A and Class F units at $11.71 each.

Toronto-based investment manager 3iQ Corp. has completed a $10 million offering in its Bitcoin Fund (QBTC.U), trading on the Toronto Stock Exchange.

A statement released today detailing the investment breakdown says the fund managed by 3iq completed its previously announced offering of Class units and Class F units at a price of $11.71. The 3iQ’s closed-end bitcoin fund initially offered Class A and Class F units at $10 each. To induce more and more buyers, there was no limit on minimum purchases.

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In spite of being traded on the Canadian exchange and operated by Canadian investment fund manager 3iq Corp, the value of the investment is denominated in U.S. dollars.

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. Earlier this year, 3iQ announced the merger of 3iQ Bitcoin Trust into The Bitcoin Fund, and are distributing class B units of the fund as qualified under the prospectus.

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The exchange-traded products 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 approval from the 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 acts 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.

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