Canadian Investment Firm 3iQ Files Prospectus for Bitcoin Fund

Canadian investment fund manager 3iQ hopes to attract Canadian retail investors with its regulated, publicly-traded Bitcoin fund.

In a press release on Nov. 28, 3iQ announced that it had filed a preliminary prospectus for its close-end Bitcoin fund, which is expected to be available on the Toronto Stock Exchange later this year.

"We expect to list on the Toronto Stock Exchange in late December or early January. As a part of our next steps, we're hoping to get Canada's big banks on board. We're hoping that two or three of Canada's biggest banks, specifically ones that want to lead in fintech space, will join the syndicate group."

The Toronto-based company revealed that 3iQ filed the prospectus for the Bitcoin fund in relation to an initial public offering of Class A and Class F units at $10 each.

Pye, who previously worked as senior VP at Fidelity Investments Canada, added that retail investors have been showing a great deal of enthusiasm for 3iQ's Bitcoin fund, as the investments will also be eligible for Canadian registered retirement savings plans and tax-free savings accounts.

3iQ appealed a negative ruling by Canada's markets regulator In February, the Ontario Securities Commission ruled against 3iQ's proposal to launch its regulated Bitcoin fund.

The firm appealed the decision and ultimately won approval from Canada's markets regulator to launch its BTC fund.

"Over the past three years, we have worked actively with the OSC's Investment Funds and Structured Products Branch to create an investment fund that we hope will allow retail investors the benefits of investing in Bitcoin through a regulated, listed fund."

In October, a report from the Canadian Digital Chamber of Commerce showed that the average annual blockchain salary in Canada is more than $98,000, making blockchain careers among the highest-paying in the country.

The ecosystem continues to face major challenges that include funding, lack of a regulatory environment, insufficient public education and little to no cooperation from banks and auditing services.