July 23 – 29, 2019 | Bank of China, Bitcoin Investor Study & More Crypto News

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

Reminder: Stablecorp and QCAD Information Session on Tuesday July 30, 2019 in Toronto, Ontario

We are happy you to invite you to an information session and product launch for Stablecorp’s new product, QCAD, the very first compliant Canadian stablecoin – transparent, audited and backed by Canadian Dollars. Stablecorp (a joint venture between 3iQ and Mavennet) is launching QCAD in Q4 2019. Please join us on July 30, 2019, from 12:00-1:30 pm at 129 Spadina Ave, Toronto, for a presentation, launch and demo of QCAD.

Register here.

Password: QCAD0730

Bank of China Supports Bitcoin Through New Infographic

July 27 – One of China’s largest state-run lenders, the Bank of China (BoC), has recently published an informative infographic about bitcoin. The infographic explains how bitcoin works, why its price is volatile, and how users can benefit from using a decentralized cryptocurrency. The infographic was surprisingly supportive of bitcoin, which contrasts the views indicated by the government of China over the last several years. The government of China had previously taken a tough stance on cryptocurrencies by banning the trade of bitcoin and outlawing initial coin offerings (ICOs). Last year, the BoC had investigated the use of blockchain technology within its trade finance division. The BoC’s bitcoin infographic may be another signal that China’s skepticism of bitcoin is beginning to fade.

Read the full article from Decrypt here.

See the full infographic here.

The IRS Says 10,000 Crypto Users Need to Pay Back Taxes

July 26 – Last Friday, The Internal Revenue Service (IRS) had warned that around 10,000 holders of cryptocurrencies may be on the hook for dodging taxes relating to digital asset investment returns. The IRS has now begun to send letters to taxpayers who may have failed to report their investment returns or who may have not paid taxes on their cryptocurrency transactions. The IRS said that it has obtained the identifications of these taxpayers through “various ongoing IRS compliance efforts”. The identification of these tax evaders may have been provided by supportive cryptoasset trading platforms and exchanges that implement KYC/AML procedures. “Taxpayers should take these letters very seriously by reviewing their tax filings and when appropriate, amend past returns and pay back taxes, interest and penalties,” said the IRS Commissioner Charles Rettig.

Read the full article from Bloomberg here.

US Treasury Secretary: New Crypto Rules Likely Coming From US Regulators

July 24 – The US Treasury Secretary Steven Mnuchin has announced that US regulators are likely to start issuing new rules on cryptocurrencies to ensure they don’t negatively impact the existing financial system. Despite being relatively quiet over the past several years, the Trump administration has recently escalated the issues surrounding digital currencies following the announcement of Facebook’s Libra last month. Mnuchin noted that financial regulators need to work together, and not in part, to establish the necessary rules for cryptocurrencies. Around a half dozen of US regulators are already overseeing the industry and working on establishing rules. The regulators include the US Securities and Exchange Commission (SEC), and the Commodity Futures Trading Commission (CFTC). “We’re looking at all of the crypto assets,” said Mnuchin. “We’re going to make sure we have a unified approach and my guess is that there are going to be more regulations that come out from all these agencies.”

Read the full article from Bloomberg here.

Grayscale: Bitcoin 2019 Investor Study

July 26 – A new report from Grayscale Investments has shown that investor interest is rapidly growing for bitcoin. The report, called the “Bitcoin: 2019 Investor Study,” investigated variables through investor surveys, asking them about their perceptions on bitcoin as an investable asset class. According to their surveys, around 36% of American investors would buy bitcoin for investment purposes, which translates to over 21 million potential investors. 79% of investors believe that bitcoin has significant potential for growth. 75% of those investors also think that the scarcity of bitcoin adds to its valuation as it resembles a “digital gold”. Interestingly, investors who are interested in bitcoin were also found to consume more financial news than investors who do not like bitcoin as an investment. The report also investigated political affiliations, demographics, and income brackets of those interested or not interested in bitcoin. “Over the last ten years, Bitcoin has emerged from a nascent protocol into an established, legitimate asset with a strong performance record and significant diversification benefits. Already, our survey shows that roughly one third of individual investors are interested in Bitcoin. A broad cross-section of investors — across ages, genders, and a variety of income levels — are intrigued by Bitcoin’s strong return potential and they’re eager to learn more” said the report.

Read the full study from Grayscale Investments here.

Grant Thornton Audits Over $10 Billion in Client Assets

July 26 – In a recent press release, the major auditing firm Grant Thornton stated that it has audited over $10 billion USD in cryptoassets in first three months of 2019. Grant Thornton has also helped audit 40 different types of cryptoassets across 100 million wallet addresses. Grant Thornton uses “proprietary methods” to analyze its client holdings, which includes “proprietary forensic nodes” to analyze more complex cryptoassets such as Ethereum. “Cryptocurrency companies must contend with an auditing challenge that is at once simple and complex,” says Johnny Lee, a national practice leader for Forensic Technology Services at Grant Thornton. “First, can you prove that you own and control the assets you are claiming as yours? And, second, do those assets really exist – and can you prove as much?”

Read the full article from CoinDesk here.

3iQ Bitcoin Trust (Class A) : NAV as at July 26, 2019

Underlying cryptoasset prices sourced from Bloomberg.

3iQ Global Cryptoasset Fund (Class A): NAV as at July 26, 2019

Underlying cryptoasset prices sourced from Bloomberg.View charts and more fund data at here.

3iQ Corp. (“3iQ”) is the first Canadian investment fund manager to agree to terms and conditions with the Canadian securities regulatory authorities which permit 3iQ to manage a multi-cryptoasset investment fund available to Canadian accredited investors. 3iQ provides accredited investors with exposure to bitcoin, ether, and litecoin through its 3iQ Global Cryptoasset Fund.

Accredited Investors: Invest Here

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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.