Canadian fund manager 3iQ has secured regulatory approval from the Ontario Securities Commission to launch a closed-end Bitcoin fund on a major exchange.
This approval marks a significant development in Canada’s regulatory environment, contrasting with the SEC’s stance in the United States.
The Canadian investment fund manager 3iQ has successfully obtained regulatory approval from the Ontario Securities Commission (OSC) to introduce a closed-end Bitcoin fund on a major exchange. This significant stride underscores Canada’s progressive regulatory environment, contrasting with the United States Securities and Exchange Commission’s (SEC) cautious stance on Bitcoin ETFs over recent years.
In a strategic move, 3iQ joined forces with esteemed asset manager VanEck to enhance their cryptocurrency offerings. This collaboration aims to establish a pioneering Bitcoin benchmark through VanEck’s MV Index Solutions, renowned for its regulated cryptocurrency indices and data series.
Gabor Gurbacs, Director at VanEck, lauded the achievement via Twitter, attributing the success to dedication and strategic partnerships with notable mentions including @3iq_corp, @vaneck_us, @MVISIndices, and @Gemini.
New York-based Gemini Trust Company LLC will play a vital role by providing custodian services for the Bitcoin fund. Such services are crucial for ensuring secure management of digital assets.
Cameron Winklevoss, President of Gemini, praised 3iQ for choosing top crypto experts for the initiative, emphasising the secure crypto storage features Gemini offers as instrumental in managing the innovative fund.
Gemini also recently launched an advanced custodial service named Gemini Custody™, designed to meet high-stakes needs of financial institutions, further enhancing its capability to support 3iQ’s fund.
3iQ’s groundbreaking fund presents a novel opportunity for retail investors to engage with Bitcoin via a regulated exchange. This development addresses core concerns around pricing, custody, audit, and public interest.
Fred Pye, CEO of 3iQ, highlighted the fund’s potential benefits, describing it as a transformative project aimed at broadening access to cryptocurrency through regulated financial channels.
Unlike the SEC’s frequent rejections of Bitcoin ETF proposals, Canada’s OSC took a forward-thinking approach by approving 3iQ’s Bitcoin fund, reflecting a distinct regulatory philosophy.
The Canadian model could potentially influence the regulatory landscape in other jurisdictions, showcasing the feasibility and benefits of integrating Bitcoin in traditional financial markets.
This decision by the OSC might serve as a blueprint for other regulatory bodies, encouraging a reevaluation of Bitcoin’s role in the financial sector.
With the expected launch of the Bitcoin fund by the end of the quarter, this initiative is poised to set a precedent in the cryptocurrency investment sector.
3iQ is actively preparing to refile their prospectus, a decisive step towards making the fund widely available and ensuring compliance with regulatory standards.
3iQ’s approved Bitcoin fund reflects a shift towards embracing digital assets within regulated frameworks.
It sets a benchmark for future cryptocurrency investments, highlighting Canada’s progressive approach.
