Canadian crypto company is considering helping US spot bitcoin ETF hopefuls
Canadian crypto company is considering helping US spot bitcoin ETF hopefuls
- 3iq put on Canada's first Bitcoin fund in April 2020 after it had contested an original decision by the Ontario Securities Commission
- The President of the US business of 3IQ said that the company could “throw [its] weight” behind the existing submission of a potential US issuer
The digital asset manager 3IQ would like to bring his experience in cooperation with Canadian securities supervisory authorities in order to provide hopeful US issuers of Bitcoin ETFs.
Although the company does not plan to apply for its own ETF in the States, 3IQ speaks to US issuers about a possible “throwing”. [its] Weight “behind her submission, Chris Matta, President of the company's US business, told Blockworks.
The SEC has repeatedly rejected proposals from fund groups to launch a spot bitcoin product. Instead of adding the mixture another proposal, according to Matta, a partnership with one or more companies could be a better way to "move the needle" in the states.
In April 2020,3IQ launched Canada's first Bitcoin fund, a closed investment vehicle for accredited investors, which is rated in US dollars. It is listed on the Toronto stock exchange. The company has experience in working with the Ontario Securities Commission (OSC).
"We fought against OSC and won with a data -controlled approach, and then we managed this product without errors for two years," said Matta. "This is something that can be really powerful for some of these issuers in the USA who want to compete with the SEC."
3IQ worked with the OSC branch for investment funds and structured products (IFSP) for more than two years before the IFSP director came to the conclusion in February 2019 that Bitcoin was an illiquid asset-which essentially destroyed the fund. The fund group applied for a hearing and checking the director's decision in front of a committee of the OSC, and the fund was then approved.
The company later launched its ether at the end of 2020. About a month after Purpose Investments launched the first Bitcoin ETF in Canada, it then put on the 3IQ Coinshares ETF (BTCQ).
"We have promoted the regulatory authorities in Canada," said Matta. "The supervisory authorities in the USA put pressure on this, and now more asset managers in the United States really go to the limits."
Grayscale Investments was particularly aggressive when trying to convert his Bitcoin Trust (GBTC) into an ETF - a proposal that the Sec is expected to decide in July.
The world's largest asset manager for digital currencies, Grayscale, asked investors to write to the agency that supports its proposal - a campaign that has led to some thousand letters.
The CEO of Grayscale, Michael Sonnenhein, recently doubled to comments that "all options were on the table" when the SEC rejected, including a lawsuit against the agency.
Although US spot bitcoin ETFs would increase the competition for the Canadian ETFs already available from 3IQ and other ETFs, Matta said that this would be a "turning point" with regard to the increasing introduction of crypto.
However,Matta said that he would not expect the SEC to approve a spot bitcoin ETF before the second half of 2023 or 2024. He quoted the recent comments by Gary Gensler, the chairman of the agency, to ensure the registration of cryptoplate forms at Sec.
"Until you have this supervision, I don't think you will feel comfortable to approve a Bitcoin ETF," said Matta. "The runway is still long."
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The Post Canada Crypto Firm Considers AIDING US Spot Bitcoin ETF HopeFuls is not a financial advice.