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It has been revealed that Shares of Canada’s first publicly listed Bitcoin fund increased by 30% since its launch in April.
On Oct. 20, 3iQ tweeted an announcement that Canada’s first Bitcoin fund listed on a major stock exchange has surpassed the market cap threshold of $100 million.
— Tyler Winklevoss (@tylerwinklevoss) October 21, 2020
3iQ’s Bitcoin Fund Registers Significant Gains since Listing
In April 2020, 3iQ launched its Bitcoin fund thereby becoming the first firm to launch a Bitcoin (BTC) fund tied and later listing the Fund’s shares (QBTC.U) on the Toronto Stock Exchange (TSX). During the period of its launch, ‘The Bitcoin Fund’ managed to list Class A ‘QBTC.U’ shares amounting to almost 1.5 million on TSX. Since then, QBTC.U has climbed 30% high from $11 (at the time of listing) to now trade at $15.80 (at the time of writing).
With more than $97 billion monthly trade, TSX is currently the largest stock exchange present in Canada. CryptoCompare, a crypto data company, and MV Index Solutions, a VanEck Europe subsidiary, provide the price indexes that the Fund uses.
Winklevoss claimed at the time of the launch that it was “the first public Bitcoin fund listed on a major stock exchange” and Gemini would act as a custodian for the Fund.
First OSC and CSA-Approved Crypto Fund
3iQ – a firm founded in 2012 – also acts as a portfolio manager as well as an investment manager of the BTC Fund. In January 2018, 3iQ was reportedly the first crypto fund to accept Canadian Securities Administrators (CSA) and the Ontario Securities Commission (OSC) regulations. As a result, Units of 3iQ’s Global Cryptoasset Fund were sold across Canada to pension funds, family offices and institutions via private placement as well as to accredited dealers, investors and advisors via Fundserv.
Therefore, the Fund became a trust that utilizes a passive investment strategy to invest directly in multiple crypto-assets like Bitcoins, Litecoins and Ether. CSA just gave the terms and conditions to cover risks associated with cryptocurrencies trade as the fund functions in Ontario and Quebec. However, it took almost three years of negotiations from the time the Fund’s prospectus was filed in 2017 in order for OSC to grant approval.
Canadian Investors Can Trade BTC Fund in Native Currency
Today, the Bitcoin Fund’s Class A Units commenced trading in Canadian dollars on the TSX. The units are trading under the current CUSIP number and the symbol “QBTC” giving Canadian investors the opportunity to use native currency in their locally dominated accounts to trade The Bitcoin Fund. Meaning, Canadians do not require to pay extra fees that are usually necessary when converting cryptocurrencies into fiat currencies.
Gemini, Winklevoss’s firm, has been involved in a lot of crypto activity in Canada as it currently works hand-in-hand with Markest, a renowned Canada’s cryptocurrency in Canada. Similarly, in September 2020, Gemini gave custodial support to Canada’s first regulated cryptocurrency exchange Wealthsimple Crypto.