November 17, 2020
3iQ’s mission is to help investors gain price exposure to digital assets in a passive and transparent manner. The Bitcoin Fund (TSX:QBTC) offers an efficient and secure alternative to direct investments in bitcoin. 3iQ has worked through a stringent regulatory process to offer investors a convenient and familiar investment fund to gain exposure to bitcoin.
The sole purpose of the Fund is to help investors gain price exposure to bitcoin. This objective is best described as passive management – every dollar that is raised into the Fund, net of fees, is used to acquire bitcoin. On a daily basis, management publishes pertinent data to our website such as the number of units outstanding, the net asset value and the amount of bitcoin per unit. Please visit https://3iq.ca/the-bitcoin-fund/ for more information.
The Bitcoin Fund is structured as a closed-end fund that issues a fixed amount of units. Units have been offered to the public during the IPO in April of 2020, in periodic overnight offerings, and in private placements to accredited investors. Management is precluded by OSC regulations from offering any units where net proceeds to the fund would be below net asset value. None of the offerings mentioned were dilutive to the Fund at the time of pricing the issue.
The market price of the units fluctuates based on:
1) the net asset value of the underlying assets
2) the market forces of supply and demand for the fixed amount of units issued
In general, if demand increases for the units, investors on the secondary markets may be willing to pay a premium to the net asset value of the underlying assets. On the contrary, if demand decreases for the units, the premium to the net asset value may decrease or go to a discount to the net asset value.
The primary goal of the manager is to maintain the correlation between the performance of the fund and the performance of bitcoin as an asset class. 3iQ will continue to monitor these market forces and take all reasonable measures to ensure that unit holders continue to have price exposure to bitcoin.
The Fund is offered pursuant to a prospectus, which should be read carefully before investing. The prospectus can be obtained from https://3iq.ca/the-bitcoin-fund/. Information contained in the prospectus includes the investment objectives and potential strategies of the Fund and other factors which may cause the actual results, performance or achievements of the Fund, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. There are ongoing fees and expenses associated with owning units of The Bitcoin Fund (the “Fund”). The Fund must prepare disclosure documents that contain key information about the Fund. You can find more detailed information about the Fund in the final prospectus. The Fund is not guaranteed, its value change frequently and past performance may not be repeated. You will usually pay brokerage fees to your dealer if you purchase or sell units of the Fund on the Toronto Stock Exchange (TSX) and the Gibraltar Stock Exchange (GSX). If the units are purchased or sold on the TSX or GSX, investors may pay more than the current net asset value when buying units of the Fund and may receive less than the current net asset value when selling them. The securities of the Fund have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirements. The final prospectus of the Fund does not constitute an offer to sell or the solicitation of an offer to buy securities of the Fund nor will there be any sale of such securities in any state in which such offer, solicitation or sale would be unlawful. The Fund is generally exposed to the following risk factors. See the prospectus for a description of these risks: No Assurance in Achieving Investment Objectives, No Listing, Loss of Investment, Fluctuation in Value of Cryptoassets, Concentration Risk, Reliance on the Manager, Reliance on the Cryptoasset Consultant, No Ownership Interest in the Cryptoasset Portfolio, Changes in Legislation, Conflicts of Interest, Valuation of the Fund, Significant Redemptions, Limited Liquidity in the Units, Limited Operating History, Not a Fund Company, Exchange Rate Risk, Liquidity Constraints on Cryptoasset Markets may Impact the Fund’s Holdings, Tax Risk, Risks associated with Investing in Bitcoin, Risks Associated with the Bitcoin Network. Index (the “Index”) is the exclusive property of MV Index Solutions GmbH and has been licensed for use by 3iQ Corp. (the “Licensee”). MVIS has contracted with CryptoCompare Data Limited to maintain and calculate the Index. CryptoCompare Data Limited uses its best efforts to ensure that the Index is calculated correctly subject to the accuracy of any data that has been provided to it by third parties. Irrespective of its obligations towards MV Index Solutions GmbH, CryptoCompare Data Limited has no obligation to point out errors in the Index to third parties. In particular, MVIS is not responsible for the Licensee and/or for Licensee’s legality or suitability and/or for Licensee’s business offerings. Offerings by Licensee, may they be based on The Bitcoin Fund, an investment trust governed under the laws of the Province of Ontario (the “Product”) or not, are not sponsored, endorsed, sold, or promoted by MVIS, Van Eck Associates Corporation as its parent company or its affiliates (collectively, “VanEck”), and MVIS and VanEck make no representation regarding the advisability of investing in Licensee and/or in Licensee’s business offerings. MVIS, VanEck and its affiliates make no warranties and bear no liability with respect to licensee. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.