Bitcoin fund approved by Canadian regulatory authority

The first regulated Bitcoin fund in North America is set to launch in Canada by the end of this year.

The Canadian investment fund institution 3iQ Corp, which focuses on disruptive technologies and digital assets, is dedicated to listing its "Bitcoin Fund" on the Canadian stock exchange, and has recently received a favorable response from the Ontario Securities Commission (OSC).

Bitcoin Fund Open to Retail Investors

The fund institution stated in a blog post that the Securities Commission has provided a favorable ruling following a public hearing. According to 3iQ, the Commission has suggested issuing a receipt for the final prospectus of the Bitcoin Fund, indicating approval has been granted.

As reported, the Bitcoin Fund is a closed-end fund and is expected to be listed on the major Canadian stock exchange in the fourth quarter of 2019.

3iQ's Bitcoin Fund will offer retail investors a significant channel for investing in digital assets. Under Ontario regulations, the fund will be classified as a non-redeemable investment fund (NRIF).

In a landmark victory for Canadian fintech and capital markets, 3iQ has been given the green light by the Ontario Securities Commission to file a prospectus and apply to list “The Bitcoin Fund” on a Canadian stock exchange.https://t.co/vMXmeEsig6

— 3iQ Digital Asset Management (@3iq_corp) October 30, 2019

3iQ CEO Fred Pye mentioned that investors will be able to buy and sell the Bitcoin Fund through traditional brokers. Additionally, these products will be eligible for Canadian retirement savings plans and tax-free savings accounts. He further stated:

Over the past three years, we have worked closely with the investment funds and structured products branch of the Commission to create an investment fund that we hope will allow retail investors to benefit from bitcoin investments through a regulated listed fund.

Regulator-Approved Enhanced Solutions

This marks a significant milestone for 3iQ as the company has been seeking approval for the Bitcoin Fund. Earlier this year, the Commission had rejected the institution's proposal citing the high-risk nature of crypto assets and the lack of suitable custody and audit solutions.

Eight months later, 3iQ addressed the Commission's concerns from the previous proposal. In contrast, regulatory progress in the U.S. seems to have stalled with many Bitcoin ETF proposals being rejected or withdrawn.

Asset management firm VanEck is one of the companies that withdrew its Bitcoin ETF proposal in the U.S. and is currently collaborating with 3iQ to provide a bitcoin price benchmark through its index solution MV Index Solutions. VanEck is a provider of cryptocurrency data and regulated indices.

It is understood that 3iQ's latest proposal also has the support of the Gemini exchange Gemini, which is a digital asset custodian service provider and holds qualified custodian certifications in the U.S.

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