3iQ, an asset management firm based out of Canada, has filed a prospectus for a regulated, Bitcoin-backed fund. According to a report from industry news medium The Block, the closed-ended fund will help provide investors with proper exposure to the digital currency space, as well as Bitcoin and its daily price movements. The company is also working on listing the fund on the Toronto Stock Exchange, with trading suspected to begin at the end of 2019.
According to the firm, the new product has been in development for years, and its launch has been approved by the Ontario Securities Commission.
Institutional Cypro Interest On the Rise
The launch of the product is coming in a year where interest in cryptocurrency finds has ballooned. Several sources have revealed the fact, pointing to the increase in cryptocurrency prices and adoption as possible incentives for investors to try their hands at the asset class.
Grayscale Investments, the largest crypto asset management firm, announced in its Digital Asset Report for Q3 2019 that interest in its several funds has continued to increase, with its Bitcoin, Ethereum, and Ethereum Classic finds all-seeing boosts in the subscription.
Per the report, the firm revealed that it received a record of $255.9 million across the third quarter, $172.8 million of which went to its Bitcoin Trust. $62.7 million went to its Ethereum Trust, while the rest were distributed across its other tracked assets.
However, while several products have been launched to help keep pace with the increase in demand, one area where little to no progress has been made has been with exchange-traded funds (ETF). Several companies have submitted proposals to the United States Securities and Exchange Commission (SEC) to launch ETFs, but the financial watchdog has left all hopes hanging in the balance.
The Slowdown in BTC Price Not Deterring Asset Managers
Sadly, the rise in institutional interest in cryptocurrencies hasn’t quite helped the assets in terms of prices. Following months of lopsided prices, Bitcoin has settled well below the $8,000 price, and while the asset is trading up on the day, its prospects of finishing the year above $10,000 continue to get bleaker by the day.
Regardless, asset management firms have continued to improve their service offerings and expand into new frontiers.
On November 22, Grayscale announced in a press release that it would be launching a diversified crypto fund for public trading. Dubbed the Dubbed Grayscale Digital Large Cap Fund (DLC), the company claimed that the product will include 5 top crypto assets, and will soon be available for over-the-counter trading through OTCQX Best Market, a popular share trading marketplace.
The fund, which was launched in 2018, provides exposure to the upper 70 percent of the digital currency class. Thanks to this move, Grayscale will be making it available, with GDLCF set as its ticker.