Investment fund manager and portfolio manager 3iQ said it has been able to complete a $10 million offering of Class A Units at a price of US $11.71 per share of the Bitcoin Fund (QBTC.U) on June 26. This comes after a $40 million offering in April, said 3iQ.
3iQ noted that the aim of the Bitcoin fund, which is now trading on the Toronto Stock Exchange, is to expose Bitcoin and its dollar price movements, and to allow the appreciation of long-term capital appreciation.
“To achieve its investment objectives, the Fund will invest in long-term holdings of bitcoin,… in order to provide investors with a convenient, secure alternative to a direct investment in bitcoin. The Fund will not speculate with regard to short-term changes in bitcoin prices.”
Gemini’s fund is open to anyone while that of 3iQ is only for accredited investors. 3iQ believes that Bitcoin investment will offer investors a low-correlated asset class capable of complementing traditional investment strategies. Hence, this is the pioneering managed stock trading fund that invests in Bitcoin to increase long term capital appreciation for a fee of 1.95%.
This comes after several announcements by European firms of Bitcoin and Ethereum Exchange-traded products (ETP) listings, including the integration of Bitcoin and Ethereum. Nonetheless, these ETPs generally track funds despite their focus on explicitly increasing long-term capital appreciation.
ARK Investment Management is authorized to issue an unlimited number of Class A units. It will utilize a minimum of 90 percent of those funds for direct investment in Bitcoin, but they cannot invest in Bitcoin firms or do anything that would lead to their reclassification as anything other than a mutual fund.
The management is going to place orders on Gemini, Genesis Global Trading, Inc., Tagomi, Coinbase Pro, as well as other New York Department of Financial Services regulated trading platforms and OTC counterparties.
This is saying that the people of Canada and those with access to the Toronto Stock Exchange can now purchase Bitcoin in a managed fund for investment and not short-term trade.