3iQ became the first Canadian fund manager to receive initial approval to launch a closed-end bitcoin fund on the Ontario stock exchange: a global first.
This long-term process is the culmination of close collaboration between several entities, including Raymond Chabot Grant Thornton and Catallaxy, under the leadership of Louis Roy.
Louis Roy, Assurance Partner at Raymond Chabot Grant Thornton and Catallaxy President, said: “We are particularly proud of having supported 3iQ during this process. In recent years, Raymond Chabot Grant Thornton and Catallaxy have invested time and money to develop leading-edge expertise and innovative tools to audit cryptocurrency funds. We are now ready to meet the needs of this ever-growing market. This Ontario Securities Commission decision will undoubtedly have a major impact on the cryptocurrency fund industry in Canada.”
Supporting 3iQ during the process
3iQ, Raymond Chabot Grant Thornton and Catallaxy have been working together on various projects for over two years. What started with a closed-end investment fund audit engagement led to a new major achievement: preparation for the creation of a publicly-traded bitcoin fund.
During hearings with the Ontario Securities Commission (OSC), numerous topics were addressed, such as the safeguarding of cryptographic assets, asset valuation, public interest and, of course, the financial statement audit.
All stakeholders raised and responded to each of these issues, and we would like to acknowledge the outstanding work of the various participants such as VanEck, Gemini Trust Company LLC, Raymond Chabot Grant Thornton and Catallaxy.
Introduction of a regulatory framework
The initial public offering of this first bitcoin fund will enable companies (and even individuals) to invest in this new financial product. In other words, it is now possible to have bitcoin exposure.
This is incredible news, as 3iQ’s new product becomes the first bitcoin fund in the world to be regulated and listed on a major stock exchange. This brings cryptocurrencies as new forms of products a little more to the forefront in our economic universe. Accessibility to bitcoins is increasing and thus paves the way for other cryptocurrencies. This digital currency is becoming much more tangible in the minds of businesses and individuals as well, who will be able to deposit this product in their TFSA or RRSP.
The Ontario Securities Commission: a solid decision
By approving the issuance of a receipt for the fund’s prospectus, the OSC is sending a strong message of support to stock markets that defines Canada as a key location for financial innovation. It is now possible to support stock exchange innovation by integrating cryptocurrencies. It also encourages the development of new investment funds that now fall within a legal regulatory framework.
With its experts in this field, Raymond Chabot Grant Thornton is able to support organizations with their digital asset fund audits:
- Due diligence for token issues;
- Digital asset audit;
- Digital asset tax services;
- Advisory services to demystify this new ecosystem.
Contact one of our experts for your business needs.