April 1 – 7, 2019 | First Block Capital, SEC Token Framework & More Crypto News

3iQ Research Group consolidates the top five cryptoasset stories of interest
to investment advisors and our investors.


3iQ Signs Letter of Intent to Acquire Management of First Block Capital’s FBC Bitcoin Trust and Distributed Ledger Technology Adopters ETF

April 4 – 3iQ Corp. announced that it has signed a Letter of Intent (LOI) to acquire the rights to manage First Block Capital’s funds, which includes the FBC Bitcoin Trust (NEO: FBCBT) and the FBC Distributed Ledger Technology Adopters ETF (NEO: FBCN). The FBC Bitcoin Trust offers Canadians a tax-efficient exposure to the cryptocurrency. The transaction will not affect the ability for Accredited Investors to purchase the FBC Bitcoin Trust on NEO Connect or its eligibility for RRSP and TFSA accounts.

The assignment of First Block’s management rights to 3iQ is subject to a review by the independent review committee for the First Block Capital Inc. (FBC) ETF as well as regulatory and unitholder approval. 3iQ Corp. is expected to become the trustee and manager of the FBC ETF. This will result in a change of the fund manager. FBC will provide unitholders with further specific details of this transaction, including the record date and timing for the unitholder meeting to approve the change of trustee and manager of the FBC.

Read the full press release here.


Leading Investment Fund Manager Selects KoreConX Digital Securities Protocol for Offering

April 4 – KoreConX announced that 3iQ Corp., Canada’s first regulated multi cryptoasset portfolio manager, has chosen the KoreProtocol for their Digital Securities Offering. By using KoreConX, companies cannot only initiate their Digital Security Offering process, but they can also find a series of solutions tailored to their business needs, including the pre, during and post phases of capital raise. From the due diligence and the documentation gathering to investor relations with the shareholders, users can find the tools they need to grow their business.

“We created the platform with the business’ owners in mind. We created it for the dynamic entrepreneur who needs efficiency and agility when managing their companies so they can focus on perfecting their business,” said Oscar Jofre, Co-Founder and CEO of KoreConX. “We are very honored that an Investment Fund Manager of the magnitude of 3iQ chose our solutions to be the technology behind their Digital Securities Offering and their company.”

Read the full press release here.


SEC Releases Token Regulatory Framework and Guidance

April 3 – The U.S. Securities and Exchange Commission (SEC) has released its regulatory framework and guidance for crypto token issuers.  The framework specifically addresses tokens and initial coin offerings (ICOs), providing issuers with a framework for determining if they are classified as securities and if relevant securities laws apply. The framework outlines several factors that token issuers need to consider regarding securities classification. Notably, the SEC has outlined who or what entities classify as an active participant (AP) in these networks. The SEC describes an AP as being “responsible for the development, improvement (or enhancement), operation, or promotion of the network, particularly if purchasers of the digital asset expect an AP to be performing or overseeing tasks that are necessary for the network or digital asset to achieve or retain its intended purpose or functionality”. Other factors such as expectation of profit, or whether an individual or group creates or supports the market in which the tokens are traded are highlighted in detail.

Read the full article here.

Read the full SEC framework here.


Active Bitcoin Wallets Rose Before its Recent Price Spike

April 3 – New research from the market intelligence firm Flipside Crypto has determined that the number of active bitcoin wallets were rising prior to the most recent price spike in bitcoin. Just two weeks before the price spike in early April, a high number of digital wallets that hold bitcoin became active after being dormant. According to Flipside Crypto, around 40-50% of all outstanding bitcoin sit in wallets that are inactive for 1-6 months at a time. However, since March 15, only 10% on average sat idle. “If you are a crypto optimist, that’s good news,” said Eric Stone of Flipside Crypto. “There are more people warming up to the idea of buying Bitcoin.” Often, bitcoin “whales” and other large holders that shift positions become more active around strong up and down moves for bitcoin. However, Stone notes that this most recent move was disperse and “broad-based” across entities, as many smaller wallets were “waking up”. “We see this move much more valid than a few whale moves in October,” said Dave Balter of Flipside Crypto. “This probably signifies a change in perception or confidence in this asset class.”

Read the full article here.


Terrorists Favor Cash Rather Than Bitcoin and Privacy Coins

April 2 – A new report on the terrorist use of cryptocurrency has been released by RAND Corporation. The comprehensive 99-page report concluded that using cryptocurrencies is less than ideal for terrorist organizations, and cash remains their preferred form of form of financing. The report noted that cash remains superior to cryptocurrencies for terrorist financing for several reasons. Perhaps most importantly, the benefits that have arisen from cryptocurrency regulation and immutable blockchains make catching cyber criminals and terrorists easier than cash. Cryptocurrency regulation and ongoing cooperation between international law enforcement and the intelligence community, as well as the traceability of cryptocurrencies, has made it difficult for terrorists to utilize. Terrorists that receive large amounts of cryptocurrency will find that they are difficult to use and manage. For example, most cryptocurrency exchanges that have fiat pairings and withdrawal options have now been subject to regulation, which include Know Your Client (KYC), Anti-Money Laundering (AML) and Anti-Terrorist Financing (ATF) procedures. The report also sheds light on privacy coins, such as Monero, but concludes that these cryptocurrencies still do not provide the total anonymity required by terrorists.

Read the full article here.

Read the full RAND report here.


3iQ Global Cryptoasset Fund: Price as at April 5, 2019

3iQ is the first regulator approved multi-cryptoasset portfolio manager in Canada, providing accredited investors with exposure to bitcoin, ether, and litecoin through its 3iQ Global Cryptoasset Fund.


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Disclosure
This Weekly Cryptoasset Newsletter is for informational purposes only and does not constitute, either explicitly or implicitly, any provision of services or products by 3iQ Corp (“3iQ”). Investors should determine for themselves whether a particular service or product is suitable for their investment needs or should seek such professional advice for their particular situation.3iQ Corp. makes no representation or warranty to any investor regarding the legality of any investment, the income or tax consequences, or the suitability of an investment for such investor. All content is original and has been researched and produced by 3iQ unless otherwise stated therein. No part of the content may be reproduced in any form, or referred to in any other publication, without the express written permission of 3iQ. All statements made regarding companies, securities or other financial information contained in the content or articles relating to 3iQ are strictly beliefs and points of view held by 3iQ and are not endorsements of any company or security or recommendations to buy or sell any security. No securities regulatory authority has expressed an opinion about these securities and it is an offence to claim otherwise. By visiting and/or otherwise using the 3iQ website in any way, you indicate that you understand and accept the terms of use as set forth on the website and agree to be bound by them. If you do not agree to the terms of use of the website, please do no access the website or any pages thereof. Any descriptions of, references to, or links to other products, publications or services does not constitute an endorsement, authorization, sponsorship by or affiliation with 3iQ with respect to any linked site or its sponsor, unless expressly stated by 3iQ. Any such information, products or sites have not necessarily been reviewed by 3iQ and are provided or maintained by third parties over whom 3iQ exercises no control. 3iQ expressly disclaims any responsibility for the content, the accuracy of the information, and/or quality of products or services provided by or advertised on these third-party sites. The information contained herein, while obtained from sources believed to be reliable, is not guaranteed as to its accuracy or completeness and confers no right on purchasers. Past performance of cryptoassets is not indicative of future performance and should not be used to forecast any return that an investor may realize.

2019-04-09T10:47:36-04:00 April 7th, 2019|