Dubai: The Middle East’s first Bitcoin-based investment fund has listed on Nasdaq Dubai, at a time when the crypto asset prices remain under heavy pressure and dropping below $30,000. On Wednesday, Bitcoin was at the $32,000 plus mark – but still some way off from the record $63,346 on April 16.
But this does not faze Frederick Pye, Chairman and CEO of 3iQ Corp., the Canadian company that has listed ‘The Bitcoin Fund’. “When we originally announced the listing [in April], Bitcoin was around it's all-time highs,” he said. “I mentioned a 50 per cent retracement would be natural and wonderful before the Dubai launch. We hope all investors in Dubai will appreciate the potential returns, just to get back to an all-time high.”
Pye’s on point with that outlook. There is always a feeling in the crypto market that Bitcoin is just a wave or two away from clawing its way back. (The recent bout of turmoil was brought on by Elon Musk of Tesla – and an avid Bitcoin fan until then – questioning the high cost of energy in mining more of these. Also, Tesla had put a stop on more purchases of the asset.)
The Bitcoin Fund was originally launched on Toronto Stock Exchange last year.
Spread the fund
For 3iQ, having the Fund on Nasdaq Dubai too offers investors an “indirect exposure” to Bitcoin by trading its units within a regulated stock exchange as well as the “opportunity for long-term capital appreciation” as an alternative to a direct investment in the crypto currency. 3iQ Corp., reputedly Canada’s largest digital asset investment fund manager, has more C$2.5 billion in assets under management.
And Pye remains a staunch believer in the asset, and not going by its recent downward ways. “This product was created to give the most important investors regulated access to one of the most exciting asset classes ever,” he said. “All investors from all demographics now have access through their traditional investment accounts without the complexities of digital storage and trading. The reception and demand from serious investors is now coming to light.”
3iQ Corp.'s assets under management
More investment funds in cryptoassets – and regulated in the most transparent trading environments – will be needed to give sufficient depth and get a wider base of investors to pile in.
The Fund has a dual-listing, with Toronto Stock Exchange being the other. Investors can transfer their units from the Toronto Stock Exchange to Nasdaq Dubai (and vice versa) as well as to acquire units directly on Nasdaq Dubai.
3iQ has appointed Dalma Capital and Canaccord Genuity as the joint-lead arrangers for the regional offering of the Fund (subject to regulatory approval). BHM Capital is the Fund’s Liquidity Provider.
“Our firm has been part of the journey with 3iQ since inception; in Canada, having led or co-led all of its public offerings on the Toronto Stock Exchange to-date,” said Sachin Mahajan, Head of MENASA, Canaccord Genuity. “Today we are proud to be able to partner with them on this landmark moment in the UAE.”