3iQ has received approval from the Ontario Securities Commission (OSC) for a bitcoin investment fund. The expectation is that the Canadian fund manager will offer the fund on the Toronto Stock Exchange (TSX).
Good news can be celebrated
The approval is received with cheers and is in stark contrast to how, for example, the US counterpart of the OSC, the SEC handles such requests.
A regulated, listed Bitcoin fund coming to the Toronto Stock Exchange ?
The milestones just keep coming this week! ?
– Pump ? (@APompliano) October 30, 2019
3iQ wrote on Wednesday that they received a favorable ruling from the OSC for the bitcoin fund, they even had to provide a confirmation of receipt of the final prospectus.
“We have dealt with pricing, custody, audit and public interest issues in a regulated investment fund. We intend to top up the prospectus as quickly as possible, “explains CEO Fred Pye.
The first in the world
The fund manager claims that their fund is the first regulated, large listed bitcoin fund in the world. With the caveat that other companies have launched similar products that are unregulated or that stay on smaller stock exchanges.
In June, the Swiss company Amun AG also launched an exchange-traded product. This product is based on the Bitwise 10 Select Large Cap Crypto Index on the Swiss SIX Exchange.
A lot of experience on board
3iQ worked closely with various partners to get the fund off the ground. Three years ago they started requesting advice from OSC’s Investment Funds and Structured Products Branch. The index on which the fund is based comes from VanEck, the same party that tried to launch an ETF in the United States.
VanEck later withdrew their application at the SEC.
Crypto exchange Gemini from the Winklevos twins also contributes. Gemini ensures safe storage and storage of the associated cryptocurrency. Gemini also wants to offer an ETF in the US.
The expectation is that the Canadian bitcoin fund will be available to customers at the end of this year. But for a long time it seemed that this fund would not get off the ground. The OSC still rejected the application in February.