May 14 – 20, 2018 | Advisor Education, Consensus Wrap-up & More Crypto News

North iQ Weekly Newsletter is curated to provide insights on digital asset industry developments, market announcements, and performance analysis.

Investors are Going to Buy Bitcoin, Whether Advisors Like it or Not

May 16, 2018 – Investors continue to be eager to enter the cryptocurrency market, despite hesitation from the investment advisor community. Many advisors are still receiving questions from clients about cryptocurrency investments, but unfortunately cannot provide advice due to lack of knowledge on this growing market. Some major financial firms, like Merrill Lynch, have completely banned bitcoin buying across the entire firm, while some firms are taking a more proactive approach, such as Goldman Sachs and their introduction of bitcoin trading desks this year.

Lex Sokolin, the Global Director of Fintech Strategy at Autonomous Research, thinks that advisors who turn a blind-eye to cryptocurrencies as investable opportunities may be making a big mistake. He believes advisors need to take the time to brush up on subjects within cryptocurrencies and the blockchain so they can address client questions properly. “Advisors really need to start to understand the basics of how blockchain works,” he said. “Start to understand why there are different cryptocurrencies.” He delves into the topic further by saying “all of these things are different, so advisors have to spend the time so they can actually help their clients make sense of this.”

Read the full article here.

3iQ is proud to work with Canadian advisors who have taken the time to be more knowledgeable in the blockchain and cryptoasset space, and those who are looking to improve their knowledge for the benefit of their clients. 3iQ offers “roundtable” education sessions to advisors to improve the understanding of blockchain basics and cryptoasset networks, as well as investment rationale for this asset class.

For more information, call or email us using our contact information here.

How Canada Taxes Bitcoin and Other Cryptocurrencies

Recap – Chief taxation officer at Northwood Family Office, Lorn Kutner, addressed the Canadian tax implications for cryptocurrencies on BNN Bloomberg from several perspectives. He notes that the government has said that cryptocurrencies and bitcoin are not seen by them as “currencies”, and should be treated just like stocks on your tax returns. If an investor sold cryptocurrency, they would be obligated to report this on their tax return as a disposition of the bitcoin position in CAD at the time in comparison to their acquisition price in CAD. Whether it is a capital gain or loss, it will be treated as such, just like with stocks. Just like capital gains taxes, they can be carried back three years. However, cryptocurrency traders who buy and sell with regularity, would have to report any gains to an income account, and any losses would be fully deducted against all sources of income, unlike capital gains.

From a transactional standpoint, if a contractor would take bitcoin as a payment, that would be recognized as income for the contractor, and they would have to report and remit applicable taxes on it. If you pay a contractor in bitcoin, you would have to report what you bought it at versus what it was disposed of. For businesses who accept bitcoin, those business receipts are business income.

Watch the full video here.

Compiled News From Consensus 2018

May 16, 2018 – Now that the biggest cryptocurrency and blockchain event Consensus 2018 has wrapped up, has provided a full timeline of what you may have missed from the event. The interactive timeline contains the developments that happened during the event, including press releases, articles, and the time of the release.

The emergence of cryptocurrencies and blockchain has brought forth a slew of new media outlets that cover this growing industry. is a live feed that compiles news in the industry from a wide range of disseminators for investment advisors and investors alike.

View the full news feed here.

Twitter/Square CEO Jack Dorsey Re-Iterates Bullish Stance on Bitcoin

May 16, 2018 – Outspoken Twitter/Square CEO Jack Dorsey has continued to express optimism on bitcoin becoming the leading payment method across the internet. He believes that “the internet deserves a native currency” and bitcoin will be a legitimate means of global payment. His payment processing company, Square, has been on a tear this year, with the price of the stock near its all-time highs. Back in February, the company announced it will allow almost all of its users to buy and sell bitcoin through its Cash App.

Not everybody at Square believes the early move into cryptocurrencies was a good idea. Dorsey said that “this was a pretty contentious move in the company,” and there are still fights and debates over the topic, including resistance from some of the company’s directors. “The world ultimately will have a single currency; the Internet will have a single currency. I personally believe that it will be Bitcoin,” said Dorsey.

Read the full article here.

Goldman-backed Circle Raises $110 Million, Plans USD-Backed Coin

May 16, 2018 – Goldman-Sachs backed firm Circle announced it has raised $110 million USD in a series E funding round which was led by the Chinese firm, Bitmain Technologies. Circle is now one of the largest cryptocurrency firms in the world, joining Coinbase as leaders in the space. Circle’s funding round will in part be used to issue a US Dollar-backed cryptocurrency labeled “USD-C”.

The new “USD-C” cryptocurrency will be based on the existing Ethereum network, which is the most popular choice amongst new developers. The efforts to release a US Dollar-backed cryptocurrency arose from the need to create a cryptocurrency that is supported by a stable asset class. Circle recently acquired one of the largest cryptocurrency exchanges, Poloniex, earlier this year. The company plans to release several new services, such as Circle Invest, Circle Trade, and Circle Pay.

Read the full article here.

3iQ Global Cryptoasset Fund: Price as at May 18, 2018

3iQ 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.

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This Weekly Cryptoasset Newsletter is for informational purposes only and does not constitute, either explicitly or implicitly, any provision of services or products by 3iQ Corp (“3iQ”). Investors should determine for themselves whether a particular service or product is suitable for their investment needs or should seek such professional advice for their particular situation.3iQ Corp. makes no representation or warranty to any investor regarding the legality of any investment, the income or tax consequences, or the suitability of an investment for such investor. All content is original and has been researched and produced by 3iQ unless otherwise stated therein. No part of the content may be reproduced in any form, or referred to in any other publication, without the express written permission of 3iQ. All statements made regarding companies, securities or other financial information contained in the content or articles relating to 3iQ are strictly beliefs and points of view held by 3iQ and are not endorsements of any company or security or recommendations to buy or sell any security. No securities regulatory authority has expressed an opinion about these securities and it is an offence to claim otherwise. By visiting and/or otherwise using the 3iQ website in any way, you indicate that you understand and accept the terms of use as set forth on the website and agree to be bound by them. If you do not agree to the terms of use of the website, please do no access the website or any pages thereof. Any descriptions of, references to, or links to other products, publications or services does not constitute an endorsement, authorization, sponsorship by or affiliation with 3iQ with respect to any linked site or its sponsor, unless expressly stated by 3iQ. Any such information, products or sites have not necessarily been reviewed by 3iQ and are provided or maintained by third parties over whom 3iQ exercises no control. 3iQ expressly disclaims any responsibility for the content, the accuracy of the information, and/or quality of products or services provided by or advertised on these third-party sites. The information contained herein, while obtained from sources believed to be reliable, is not guaranteed as to its accuracy or completeness and confers no right on purchasers. Past performance of cryptoassets is not indicative of future performance and should not be used to forecast any return that an investor may realize.

Fred Pye

Frederick T. Pye


Frederick T. Pye is the Chairman, Chief Executive Officer and Director of 3iQ Corp. He is also the Chairman and Director of 3iQ Digital Holdings Inc. Mr. Pye is recognized for creating and promoting creative and unique investment products for the investment industry.

Mr. Pye has managed private client portfolios with Landry Investment Management and various other investment dealers. Prior to this Mr. Pye was Founder, President & Chief Executive Officer of Argentum Management and Research Corporation, a company dedicated to managing and distributing quantitative investment portfolios including the first long-short mutual fund in Canada.

He was also Senior Vice-President and National Sales Manager of Fidelity Investments Canada and an integral part of the team that saw assets rise from $80 million to over $7.5 billion in assets under management during his tenure. He also held various positions with Guardian Trust Company, which listed the first Gold, Silver and Platinum Certificates on the Montreal Exchange.

Mr. Pye obtained a Masters in Business Administration from Concordia University.