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3iQ Signs Letter of Intent to Acquire Management of First Block Capital’s FBC Bitcoin Trust and Distributed Ledger Technology Adopters ETFApril 4 – 3iQ Corp. announced that it has signed a Letter of Intent (LOI) to acquire the rights to manage First Block Capital’s funds, which includes the FBC Bitcoin Trust (NEO: FBCBT) and the FBC Distributed Ledger Technology Adopters ETF (NEO: FBCN). The FBC Bitcoin Trust offers Canadians a tax-efficient exposure to the cryptocurrency. The transaction will not affect the ability for Accredited Investors to purchase the FBC Bitcoin Trust on NEO Connect or its eligibility for RRSP and TFSA accounts. The assignment of First Block’s management rights to 3iQ is subject to a review by the independent review committee for the First Block Capital Inc. (FBC) ETF as well as regulatory and unitholder approval. 3iQ Corp. is expected to become the trustee and manager of the FBC ETF. This will result in a change of the fund manager. FBC will provide unitholders with further specific details of this transaction, including the record date and timing for the unitholder meeting to approve the change of trustee and manager of the FBC. Read the full press release here. |
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Leading Investment Fund Manager Selects KoreConX Digital Securities Protocol for OfferingApril 4 – KoreConX announced that 3iQ Corp., Canada’s first regulated multi cryptoasset portfolio manager, has chosen the KoreProtocol for their Digital Securities Offering. By using KoreConX, companies cannot only initiate their Digital Security Offering process, but they can also find a series of solutions tailored to their business needs, including the pre, during and post phases of capital raise. From the due diligence and the documentation gathering to investor relations with the shareholders, users can find the tools they need to grow their business. “We created the platform with the business’ owners in mind. We created it for the dynamic entrepreneur who needs efficiency and agility when managing their companies so they can focus on perfecting their business,” said Oscar Jofre, Co-Founder and CEO of KoreConX. “We are very honored that an Investment Fund Manager of the magnitude of 3iQ chose our solutions to be the technology behind their Digital Securities Offering and their company.” Read the full press release here. |
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SEC Releases Token Regulatory Framework and GuidanceApril 3 – The U.S. Securities and Exchange Commission (SEC) has released its regulatory framework and guidance for crypto token issuers. The framework specifically addresses tokens and initial coin offerings (ICOs), providing issuers with a framework for determining if they are classified as securities and if relevant securities laws apply. The framework outlines several factors that token issuers need to consider regarding securities classification. Notably, the SEC has outlined who or what entities classify as an active participant (AP) in these networks. The SEC describes an AP as being “responsible for the development, improvement (or enhancement), operation, or promotion of the network, particularly if purchasers of the digital asset expect an AP to be performing or overseeing tasks that are necessary for the network or digital asset to achieve or retain its intended purpose or functionality”. Other factors such as expectation of profit, or whether an individual or group creates or supports the market in which the tokens are traded are highlighted in detail. Read the full article here. Read the full SEC framework here. |
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Active Bitcoin Wallets Rose Before its Recent Price SpikeApril 3 – New research from the market intelligence firm Flipside Crypto has determined that the number of active bitcoin wallets were rising prior to the most recent price spike in bitcoin. Just two weeks before the price spike in early April, a high number of digital wallets that hold bitcoin became active after being dormant. According to Flipside Crypto, around 40-50% of all outstanding bitcoin sit in wallets that are inactive for 1-6 months at a time. However, since March 15, only 10% on average sat idle. “If you are a crypto optimist, that’s good news,” said Eric Stone of Flipside Crypto. “There are more people warming up to the idea of buying Bitcoin.” Often, bitcoin “whales” and other large holders that shift positions become more active around strong up and down moves for bitcoin. However, Stone notes that this most recent move was disperse and “broad-based” across entities, as many smaller wallets were “waking up”. “We see this move much more valid than a few whale moves in October,” said Dave Balter of Flipside Crypto. “This probably signifies a change in perception or confidence in this asset class.” Read the full article here. |
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Terrorists Favor Cash Rather Than Bitcoin and Privacy CoinsApril 2 – A new report on the terrorist use of cryptocurrency has been released by RAND Corporation. The comprehensive 99-page report concluded that using cryptocurrencies is less than ideal for terrorist organizations, and cash remains their preferred form of form of financing. The report noted that cash remains superior to cryptocurrencies for terrorist financing for several reasons. Perhaps most importantly, the benefits that have arisen from cryptocurrency regulation and immutable blockchains make catching cyber criminals and terrorists easier than cash. Cryptocurrency regulation and ongoing cooperation between international law enforcement and the intelligence community, as well as the traceability of cryptocurrencies, has made it difficult for terrorists to utilize. Terrorists that receive large amounts of cryptocurrency will find that they are difficult to use and manage. For example, most cryptocurrency exchanges that have fiat pairings and withdrawal options have now been subject to regulation, which include Know Your Client (KYC), Anti-Money Laundering (AML) and Anti-Terrorist Financing (ATF) procedures. The report also sheds light on privacy coins, such as Monero, but concludes that these cryptocurrencies still do not provide the total anonymity required by terrorists. Read the full article here. Read the full RAND report here. |
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3iQ Global Cryptoasset Fund: Price as at April 5, 20193iQ is the first regulator approved multi-cryptoasset portfolio manager in Canada, providing accredited investors with exposure to bitcoin, ether, and litecoin through its 3iQ Global Cryptoasset Fund. |
