February 18, 2022 | North iQ Newsletter

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

Incremental Allocation to bitcoin (BTC)

  • Over the last five years, traditional 60/40 equity and bond portfolios which had allocated to bitcoin (BTC) performed well compared to those that didn’t allocate to BTC.
  • Despite nearly a three-year bear market from 2018-2020, where the USD value of BTC incurred a maximum drawdown of nearly 74%, diversified portfolios which included BTC performed well compared to those that didn’t allocate on an annualized basis.
  • A traditional 60/40 equity and bond portfolio incurred a maximum drawdown of -11.12% over a five-year time period, while a mixed 58.5/38.5/3 equity, bond, and BTC portfolio, as shown in Portfolio 4 below, incurred a maximum drawdown of just -11.96%.
  • Incremental allocations to BTC could increase a portfolio’s Sharpe Ratio and may boost its annualized returns.

     

  • Source: 3iQ Corp, Portfolio Visualizer as at January 31, 2022. Data shows 5-year performance of various portfolios. The equities portion of the portfolio is represented by SPDR S&P 500 ETF Trust (SPY). The bonds portion of the portfolio is represented by iShares Core U.S. Aggregate Bond ETF (AGG). The BTC portion of the portfolio is Bitcoin Market Price USD (BTC) commencing January 31, 2017. This is a hypothetical example, for illustrative purposes only. Past performance is not indicative of future results.

  • Notes: Portfolios rebalanced annually. Dividends reinvested. Prices expressed in USD.
  • *Sharpe Ratio and Max Drawdown as of February 11, 2022.

​​​​​​Leveraging 3iQ’s Bitcoin ETFs as a Canadian Investor

  • 3iQ’s bitcoin products can be purchased inside Tax-Free Savings Accounts (TFSAs) and Registered Retirement Savings Plans (RRSPs), in addition to other Canadian registered accounts.
  • Investors could diversify their type of bitcoin exposure by utilizing funds such as TSX:BTCQ and TSX:QBTC.
  • Clients which buy and sell ETFs may only incur trading fees set by brokerage platforms, which are typically more favorable than those from spot cryptocurrency exchanges.
  • Buying and selling real BTC through centralized exchanges could involve maker/taker fees, e-transfer fees, wire-transfer fees, and more.

3iQ Funds which hold bitcoin (BTC)

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Disclaimer

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.

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This website page is prepared and issued by 3iQ Corp (ARBN 655771010) (3iQ), a Corporate Authorized Representative (No. 001296524) of Perpetual Corporate Trust Limited (ACN 000 341 533) AFSL 392673. This website page provides general information only and is not intended to provide you with financial advice, and has been prepared without taking into account your objectives, financial situation or needs. You should consider the product disclosure statement (PDS) and target market determination (TMD), available at www.3iq-au.com , prior to making any investment decisions. If you require financial advice that takes into account your personal objectives, financial situation or needs, you should consult your licenced or authorised financial advisor. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. Neither 3iQ or Perptual guarantees repayment of capital or any particular rate of return from the Funds. Past performance is not indicative of future performance.

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Fred Pye

Frederick T. Pye

CHAIRMAN, CHIEF EXECUTIVE OFFICER & DIRECTOR

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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.