Canada launches regulated bitcoin fund, open to retail investors at the end of the year

According to NewsBTC's October 31 report, retail investors in Canada will soon be able to access Bitcoin through a regulated closed-end fund.

Bank-bitcoin-blockchain-1036635 (Source: pexels )

Bitcoin funds are open to retail investors before the end of the year

In a press release on October 31, 3iQ announced that it had received a favorable ruling from the Ontario Securities Commission on its closed Bitcoin fund. The fund is expected to be listed on a major Canadian stock exchange by the end of this year.

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Canada’s financial technology and capital markets achieved a landmark victory, the Ontario Securities Commission approved the prospectus submitted by 3iQ, and applied for the listing of the “Bitcoin Fund” on the Canadian Stock Exchange.

——October 31, 2019 In February of this year, Canadian market regulators rejected the proposal of 3iQ to launch its regulated bitcoin fund. However, the Toronto-based 3iQ company appealed the decision and eventually obtained approval from the Securities Commission to launch the Bitcoin Fund. 3iQ CEO Fred Pey said:

For the past three years, we have been actively working with the Ontario Securities Commission's investment funds and structured products divisions and have created an investment fund that we hope will allow retail investors to invest through a regulated listed fund. Benefit from Bitcoin.

Pey, who served as senior vice president of Fidelity Investments Canada, told The Financial Post that retail investors will be able to buy and sell Bitcoin funds through traditional stockbrokers. These investments will also apply to Canadian registered retirement savings plans and tax-free savings accounts.

Taylor Wenkleworth: This Bitcoin Fund “is creating history”

At a hearing today, Lawrence Haber, a commissioner for the Ontario Securities Commission, said regulators did not fully prove that such funds built around Bitcoin did not comply with existing regulations. He also refutes the notion that retail investors are not mature enough to detect the possible risks of investing in digital currencies such as Bitcoin.

Howard Atkinson, chairman of 3iQ, commented on the victory, which the company's social media department called "milestones":

We look forward to providing retail investors with this exciting new asset class exposure in both registered and traditional investment accounts. ,

At the same time, Taylor Wenkleworth, co-founder of Gemini's cryptocurrency trading platform, said the ruling was "making history" and added that he is proud that 3iQ will use the company's Bitcoin hosting solution. Protect the user's investment.

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We are making history. Gemini will be the custodian of this bitcoin fund, which will be listed on the Canadian Stock Exchange! Earthen hibiscus

——October 31, 2019 Taylor’s twin brother Cameron added:

3iQ has carefully selected a number of professional partners in the digital asset industry to create a safe and reliable fund product for the Canadian market, and we are pleased to be selected as their custodian.

The fund's partners include not only Gemini, but also VanEck, one of the companies that have been trying to bring bitcoin ETFs to the US market.

It remains to be seen whether Bitcoin funds will be welcomed by investors. However, this ruling is an important step for regulators to adopt a greater degree of acceptance of this asset class, as most of the world's regulated bitcoin trading platforms are only open to qualified investors.