3iQ Research Group consolidates the top five cryptoasset stories of interest to investment advisors and our investors.
3iQ Corp Files The Bitcoin Fund IPO
TORONTO – November 28, 2019 – 3iQ Corp. is pleased to announce that it has filed and been receipted on its preliminary prospectus for The Bitcoin Fund (the “Fund”) in relation to an initial public offering of Class A units and Class F units (the “Units”) at a price of $10.00 USD per unit. The Fund is a closed-end investment fund established as a trust under the laws of the Province of Ontario and the Units will be an eligible qualified investment for registered investment accounts.
The Fund’s investment objectives are to provide holders of Units with:
(a) exposure to the digital currency bitcoin and the daily price movements of the U.S. dollar price of bitcoin, and
(b) the opportunity for long-term capital appreciation.
3iQ Corp., will act as the investment manager and portfolio manager of the Fund.
The offering is being led by Canaccord Genuity Corp.
3iQ is a Canadian investment fund manager focused on providing investors with exposure to digital assets. 3iQ currently manages two private digital asset funds which are eligible for investment by accredited investors in Canada or in reliance on other exemptions from the prospectus requirement.
Founded in 2012, 3iQ is currently focused on digital assets, disruptive technologies and the blockchain space. For further information, please visit our website at www.3iQ.ca or contact Frederick T. Pye (514) 775-0010.
A preliminary prospectus dated November 27, 2019 containing important information relating to these securities has been filed with securities commissions or similar authorities in each of the provinces and territories of Canada other than Quebec. The preliminary prospectus is still subject to completion or amendment. Copies of the preliminary prospectus may be obtained from Canaccord Genuity Corp. There will not be any sale or any acceptance of an offer to buy the securities until a receipt for the final prospectus has been issued.
US Federal Reserve is Evaluating a Digital Dollar, But Benefits Still Unclear
November 20 – In a response to Rep. French Hill (R-Ark.) and Rep. Bill Foster (D-Ill), the Federal Reserve Chairman Jerome Powell said that the central bank is continuing to “carefully analyze the costs and benefits of pursuing” a central bank digital currency (CBDC) in the United States. Hill and Foster had previously expressed concerns in a letter to the chairman in late September 2019, highlighting the potential risks to the US dollar if another country or private enterprise creates a widely used cryptocurrency. Powell reiterated that payments in the US remain “innovative and competitive”, while other countries such as China are exploring CBDC’s of their own. “[The Federal Reserve] has not identified potential material benefits of [a] general purpose CBDC to the implementation of monetary policy relative to our existing tools,” said Chairman Powell.
Read the full article from Coindesk here.
China’s Crypto Boom Less ‘Fragmented’ as Government Backs Blockchain Efforts
November 19 – Industry experts in Asia are expecting less fragmentation for cryptocurrency initiatives in China after president Xi Jinping embraced blockchain and the “industrialization of the digital economy”. Recent crackdowns on Chinese crypto exchanges appear to show an increasing authoritative stance from China’s government on the sector. Meanwhile, The People’s Bank of China is currently developing its Digital Currency Electronic Payment (DCEP), which may be released within months. “I hope that we will have an enlightened infrastructure here,” said Paul Brody, EY global blockchain leader, at the CNBC’s East Tech West conference in China. “And I hope that we will avoid some of the mistakes that happened in the rest of the world.”
Read the full report from CNBC here.
EU Launches Estimated €400M Blockchain and AI Fund
November 22 – The European Investment Fund (EIF) and the European Commission have introduced a €400 million investment fund to make capital more available to AI and blockchain projects. The coalition will help spur European SMEs to raise capital through VC funds, and other investors. The EIF claims that “cornerstone” funding is already in place, and private investors will raise this amount higher over the next year. The US is currently the world’s biggest spender on blockchain, with $1.1 billion USD expected this year. The EU is second, at $674 million and China in third with $319 million, according to the International Data Corporation.
Read the full article from Coindesk here.
Fidelity Digital Assets Obtains NY Trust Charter to Custody Bitcoin
November 19 – Fidelity Digital Assets recently obtained a trust company charter from the New York State Department of Financial Services (NYDFS). Fidelity Digital Assets is now the 23rd company to be approved by the NYDFS to conduct in virtual currency business activities in the state. The charter will allow the Fidelity Investments unit to custody bitcoin for institutional investors. “The designation as a New York Trust Company under the supervision and examination of the DFS builds on the credibility and trust we’re establishing amongst institutions,” said Michael O’Reilly, Chief Operating Officer for Fidelity Digital Assets.
Read the full article from the Coindesk here.
3iQ Bitcoin Trust (Class A) : NAV as at November 27, 2019
Underlying cryptoasset prices sourced from Bloomberg.View charts and more fund data at https://www.theglobeandmail.com/investing/markets/funds/FBCBT.CF/performance/
3iQ Global Cryptoasset Fund (Class A): NAV as at November 27, 2019
Underlying cryptoasset prices sourced from Bloomberg.View charts and more fund data at https://www.theglobeandmail.com/investing/markets/funds/TIQ101.CF/performance/
3iQ Corp. (“3iQ”) is the first Canadian investment fund manager to agree to terms and conditions with the Canadian securities regulatory authorities which permit 3iQ to manage a multi-cryptoasset investment fund available to Canadian accredited investors. 3iQ provides accredited investors with exposure to bitcoin, ether, and litecoin through its 3iQ Global Cryptoasset Fund.