3iQ first firm to have OSC and CSA-approved crypto fund

bitcoin chess piece in front of a computer screen

Toronto-based 3iQ said it has agreed to terms and conditions with the Ontario Securities Commission (OSC) and the Canadian Securities Administrators (CSA) to act as a portfolio manager and investment fund manager investing in multiple cryptoassets.

3iQ says that it is the first fund created in Ontario that can be sold across Canada. Units of 3iQ’s Global Cryptoasset Fund will be available to accredited investors, advisors, and dealers via Fundserv, and to pension funds, institutions, and family offices via private placement. The fund is structured as a trust, and will invest directly in bitcoin, ether, and litecoins through a passive investments strategy.

“We have worked diligently to provide a pure, low-cost, secure method for both accredited and institutional investors to assume a core position in this new and expanding asset class,” said 3iQ CEO Frederick Pye. “Although an exempt market product, we at 3iQ are excited to offer this product with our partners and to bring a diversified basket of leading digital assets to institutions and qualified investors.”

CSA published the terms and conditions for the fund to function in Ontario and Quebec to cover risks associated with cryptocurrencies. Some of the conditions include providing a report from an independent auditor or similar document from the principal regulator before the fund’s calendar year end, annual audited financial statements to securityholders, and a change in the firm’s policies and procedures which are used to value cryptocurrencies held by any investment fund managed by the firm.

The two regulatory bodies have been outspoken in their caution of cryptocurrencies in the past. In August 2017, Canadian Securities Administrators put out a statement reminding companies to take regulations into account for ICOs. Less than a month later, Kik excluded Canada from its ICO, citing uncertainty from the OSC.

3iQ aims to launch and complete its first close within the next few weeks.

Photo via Unsplash

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