3iQ Closed End Funds

November 17, 2020

3iQ’s mission is to help investors gain price exposure to digital assets in a passive and transparent manner. The Bitcoin Fund (TSX:QBTC) offers an efficient and secure alternative to direct investments in bitcoin. 3iQ has worked through a stringent regulatory process to offer investors a convenient and familiar investment fund to gain exposure to bitcoin.

The sole purpose of the Fund is to help investors gain price exposure to bitcoin. This objective is best described as passive management – every dollar that is raised into the Fund, net of fees, is used to acquire bitcoin. On a daily basis, management publishes pertinent data to our website such as the number of units outstanding, the net asset value and the amount of bitcoin per unit. Please visit https://3iq.ca/the-bitcoin-fund/ for more information.

The Bitcoin Fund is structured as a closed-end fund that issues a fixed amount of units. Units have been offered to the public during the IPO in April of 2020, in periodic overnight offerings, and in private placements to accredited investors. Management is precluded by OSC regulations from offering any units where net proceeds to the fund would be below net asset value. None of the offerings mentioned were dilutive to the Fund at the time of pricing the issue.

The market price of the units fluctuates based on:

1) the net asset value of the underlying assets

2) the market forces of supply and demand for the fixed amount of units issued

In general, if demand increases for the units, investors on the secondary markets may be willing to pay a premium to the net asset value of the underlying assets. On the contrary, if demand decreases for the units, the premium to the net asset value may decrease or go to a discount to the net asset value.

The primary goal of the manager is to maintain the correlation between the performance of the fund and the performance of bitcoin as an asset class. 3iQ will continue to monitor these market forces and take all reasonable measures to ensure that unit holders continue to have price exposure to bitcoin.

Disclosures:


The Fund is offered pursuant to a prospectus, which should be read carefully before investing. The prospectus can be obtained from https://3iq.ca/the-bitcoin-fund/. Information contained in the prospectus includes the investment objectives and potential strategies of the Fund and other factors which may cause the actual results, performance or achievements of the Fund, or industry results, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. There are ongoing fees and expenses associated with owning units of The Bitcoin Fund (the “Fund”). The Fund must prepare disclosure documents that contain key information about the Fund. You can find more detailed information about the Fund in the final prospectus. The Fund is not guaranteed, its value change frequently and past performance may not be repeated.  You will usually pay brokerage fees to your dealer if you purchase or sell units of the Fund on the Toronto Stock Exchange (TSX) and the Gibraltar Stock Exchange (GSX). If the units are purchased or sold on the TSX or GSX, investors may pay more than the current net asset value when buying units of the Fund and may receive less than the current net asset value when selling them. The securities of the Fund have not been and will not be registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or any applicable exemption from the registration requirements. The final prospectus of the Fund does not constitute an offer to sell or the solicitation of an offer to buy securities of the Fund nor will there be any sale of such securities in any state in which such offer, solicitation or sale would be unlawful. The Fund is generally exposed to the following risk factors. See the prospectus for a description of these risks: No Assurance in Achieving Investment Objectives, No Listing, Loss of Investment, Fluctuation in Value of Cryptoassets, Concentration Risk, Reliance on the Manager, Reliance on the Cryptoasset Consultant, No Ownership Interest in the Cryptoasset Portfolio, Changes in Legislation, Conflicts of Interest, Valuation of the Fund, Significant Redemptions, Limited Liquidity in the Units, Limited Operating History, Not a Fund Company, Exchange Rate Risk, Liquidity Constraints on Cryptoasset Markets may Impact the Fund’s Holdings, Tax Risk, Risks associated with Investing in Bitcoin, Risks Associated with the Bitcoin Network. Index (the “Index”) is the exclusive property of MV Index Solutions GmbH and has been licensed for use by 3iQ Corp. (the “Licensee”). MVIS has contracted with CryptoCompare Data Limited to maintain and calculate the Index. CryptoCompare Data Limited uses its best efforts to ensure that the Index is calculated correctly subject to the accuracy of any data that has been provided to it by third parties. Irrespective of its obligations towards MV Index Solutions GmbH, CryptoCompare Data Limited has no obligation to point out errors in the Index to third parties. In particular, MVIS is not responsible for the Licensee and/or for Licensee’s legality or suitability and/or for Licensee’s business offerings. Offerings by Licensee, may they be based on The Bitcoin Fund, an investment trust governed under the laws of the Province of Ontario (the “Product”) or not, are not sponsored, endorsed, sold, or promoted by MVIS, Van Eck Associates Corporation as its parent company or its affiliates (collectively, “VanEck”), and MVIS and VanEck make no representation regarding the advisability of investing in Licensee and/or in Licensee’s business offerings. MVIS, VanEck and its affiliates make no warranties and bear no liability with respect to licensee. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. 

November 17th, 2020

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The Bitcoin Fund Establishes At-The-Market Equity Program

Toronto, July 13, 2021 (GLOBE NEWSWIRE) — Not for distribution to U.S. newswire services or for dissemination in the United States.

This announcement and the information contained herein is restricted and is not for release, publication or distribution, in whole or in part, directly or indirectly in, or into or from the United States or any other jurisdiction in which the same would be unlawful. Further, this announcement is for information purposes only and shall not constitute an offer to sell or issue or the solicitation to buy, subscribe for or otherwise acquire any securities of The Bitcoin Fund in any jurisdiction in which any such offer or solicitation would be unlawful.

The Bitcoin Fund (the “Fund”) is pleased to announce its at-the-market equity program (the “ATM Program”) to allow the Fund to issue Class A Units having an aggregate sale price of up to US$200,000,000 (the “Class A Units”) to the public from time to time, at the discretion of 3iQ Corp. (the “Manager” or “3iQ”). Any Class A Units issued will be sold at the prevailing market price at the time of sale through the Toronto Stock Exchange (“TSX”) or any other marketplace in Canada on which the Class A Units are listed, quoted or otherwise traded.

The volume and timing of distributions under the ATM Program, if any, will be determined at the Manager’s sole discretion. The ATM Program will be effective until December 5, 2022 unless terminated prior to such date by the Fund. The Fund intends to use the proceeds from the ATM Program in accordance with the Fund’s investment objectives, investment strategies and investment restrictions.

Sales of the Class A Units through the ATM Program will be made pursuant to the terms of an equity distribution agreement dated July 9, 2021 with Canaccord Genuity Corp. (the “Agent”).

Sales of Class A Units will be made by way of “at-the-market distributions” as defined in National Instrument 44-102 Shelf Distributions, including sales made directly on the TSX or on any other existing trading market for the Class A Units in Canada. Since the Class A Units will be distributed at prevailing market prices at the time of the sale, prices may vary among purchasers during the period of distribution. The ATM Program is being offered pursuant to a prospectus supplement dated July 9, 2021 to the Fund’s short form base shelf prospectus dated November 5, 2020, as amended by amendment no. 1 dated January 5, 2021. Copies of the prospectus supplement and the short form base shelf prospectus may be obtained from your registered financial advisor using the contact information for such advisor, or from representatives of the Agent, and are available on SEDAR at www.sedar.com.

About 3iQ Corp.

Founded in 2012, 3iQ is Canada’s largest digital asset investment fund manager with over C$2.5 billion in assets under management. 3iQ was the first Canadian investment fund manager to offer a public bitcoin investment fund, The Bitcoin Fund (TSX: QBTC, QBTC.U), and a public Ether investment fund, The Ether Fund (TSX: QETH.UN, QETH.U). More recently, 3iQ launched the 3iQ CoinShares Bitcoin ETF (TSX: BTCQ, BTCQ.U) and the 3iQ CoinShares Ether ETF (TSX: ETHQ, ETHQ.U). 3iQ offers investors convenient and familiar investment products to gain exposure to digital assets. For more information about 3iQ and its digital asset investment funds, visit www.3iQ.ca or follow us on Twitter @3iQ_corp.

Press Contact

Fred Pye – Chairman and CEO  

E: fred.pye@3iQ.ca  

P: +1 (416) 639-2130 

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Important Notices

THIS ANNOUNCEMENT AND THE INFORMATION CONTAINED THEREIN, IS RESTRICTED AND IS NOT FOR PUBLICATION, RELEASE OR DISTRIBUTION, IN WHOLE OR IN PART, DIRECTLY OR INDIRECTLY, IN OR INTO OR FROM THE UNITED STATES OR ANY JURISDICTION IN WHICH THE SAME WOULD BE UNLAWFUL.

This announcement should not be distributed, forwarded, transmitted or otherwise disseminated in or into the United States. This announcement does not constitute an offer to sell or issue or the solicitation of an offer to buy or subscribe for securities in the United States or any other jurisdiction. The ETF’s securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “Securities Act”), or under the applicable securities laws of any state or other jurisdiction of the United States, and may not be offered, sold, resold, transferred or delivered, directly or indirectly within, into or in the United States, absent registration or an applicable exemption from, or except in a transaction not subject to, the registration requirements of the Securities Act and in compliance with the securities laws of any relevant state or other jurisdiction of the United States. Neither this announcement, nor the fact that it has been disseminated, shall form the basis of, or be relied upon in connection with, any future information that we distribute.

Disclaimer

Please read the prospectus before investing. Important information about the ETF is contained in the prospectus. Copies of the prospectus may be obtained from 3iQ Corp. or at www.sedar.com. 

You will usually pay brokerage fees to your dealer if you purchase or sell units of the ETF on a stock exchange or other alternative Canadian trading system (an “exchange”). If units of the ETF are purchased or sold on an exchange, investors may pay more than the current net asset value when buying units of the ETF and may receive less than the current net asset value when selling them.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently, and past performance may not be repeated.

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Fred Pye

Frederick T. Pye

CHAIRMAN, CHIEF EXECUTIVE OFFICER & DIRECTOR

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.