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Canadian Regulator Green-Lights Bitcoin Fund IPO

The Bitcoin Fund’s initial public offering (IPO) filing has been accepted by Canada’s Ontario Securities Commission. Despite previously rejecting it, the Canadian regulator finally accepted the fund’s IPO prospectus after a public hearing and a favorable ruling.

Also read: Bitcoin ATMs Installed at 5 Major Malls in the US

The Bitcoin Fund IPO

Crypto-focused Canadian investment fund manager 3IQ Corp. announced on Thursday that it has filed a preliminary prospectus for the IPO of The Bitcoin Fund. More importantly, the prospectus dated Nov. 27 has been receipted by the Ontario Securities Commission (OSC) after previously rejecting it. The IPO will offer two classes of units at $10 each.

The Bitcoin Fund is a closed-end investment fund established as a trust under Ontario’s laws, the company explained, adding that “the units will be an eligible qualified investment for registered investment accounts.” The fund’s investment objectives are to provide investors with long-term capital appreciation and exposure to bitcoin and its daily price movement in USD, the announcement details.

Canadian Regulator Green-Lights Bitcoin Fund IPO

Founded in 2012, 3IQ already manages two other private digital asset funds for accredited investors in Canada. It will act as The Bitcoin Fund’s investment and portfolio manager. The crypto-focused company has been working to bring a public bitcoin fund to market for Canadian retail investors since 2016.

Success After a Long Battle

3IQ Corp. originally filed a preliminary prospectus for the IPO of The Bitcoin Fund with the OSC’s Investment Funds & Structures Projects branch (IFSP) in October last year. However, the staff raised a number of concerns after reviewing it, arguing that the fund was not in the public interest of Canadians. This resulted in the IFSP director rejecting the fund’s prospectus in February. The company then requested a hearing and a review of this decision. After a public hearing and several meetings, OSC Commissioner Lawrence P. Haber ruled that the staff’s concerns “do not warrant denying a receipt for The Bitcoin Fund’s prospectus.”

Canadian Regulator Green-Lights Bitcoin Fund IPO

The commissioner believes that it is not the role of securities regulators to approve or disapprove of the merits of the underlying investment being offered to the public — bitcoin in this case. Among other bullish statements, he said, “there is sufficient evidence of real volume and real trading in bitcoin on registered exchanges in large dollar size.” After addressing each point of concern raised by the staff, the commissioner ordered the IFSP director to issue a receipt for the fund’s prospectus unless new evidence was found to warrant a rejection. Several weeks later, the company announced that the regulator has finally issued a receipt for the fund’s prospectus.

Nonetheless, the staff noted that “there are remaining steps for completion before a final offering prospectus can be receipted.” Particularly, Commissioner Haber’s order reveals that the final prospectus would include additional information regarding the offering such as pricing information and details regarding underwriters. The order further states:

3IQ also confirmed that it does intend to offer units of the fund to Canadian retail investors in all provinces and territories of Canada.

The company has clarified that the preliminary prospectus is subject to completion or amendment, and the sale will commence after the regulator has issued a receipt for the final prospectus.

What do you think of the OSC finally accepting the IPO filing for The Bitcoin Fund? Let us know in the comments section below.

Images courtesy of Shutterstock.

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Kevin Helms

A student of Austrian Economics, Kevin found Bitcoin in 2011 and has been an evangelist ever since. His interests lie in Bitcoin security, open-source systems, network effects and the intersection between economics and cryptography.

Kevin Helms , 2019-12-01 00:05:45 ,

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NewsBlock © 2019 - 2020 All rights reserved.

NewsBlock © 2019 - 2020. All rights reserved.

While Bitcoin’s price seemingly moves without rhyme or reason — collapsing by dozens of percent and embarking on face-melting rallies on a whim — the cryptocurrency market is filled to the brim with fractals.

Related Reading: Analyst: Bitcoin Price Likely to Fall to Low-$8,000s as Chart Remains Weak

A brief aside: A fractal, in the context of technical analysis and financial markets anyway, is when an asset’s price action is seen during a different time. This form of analysis isn’t that popular, but it has proven to be somewhat valuable in analyzing Bitcoin.

One recent fractal popularized by a well-known cryptocurrency trader is implying that BTC is going to return to the low-$7,000s in the coming days.

Bitcoin Fractal Implies Retracement to Low-$7,000s

A well-known crypto trader going by “Tyler Durden” on Twitter recently posted the chart below, which shows that a Bitcoin price fractal may be playing out. The fractal has four phases: horizontal consolidation marked by one fakeout, a surge above the consolidation phase, a distribution, then a strong drop to fresh lows.

If the fractal plays out in full, BTC could reach the low-$7,000s again, potentially as low as $7,100. This would represent a 20-odd percent collapse from the current price point of $8,800.

It isn’t only a fractal that is hinting Bitcoin has the potential to visit its lows. As we reported on Saturday, Bloomberg believes that if the GTI Vera Convergence Divergence Indicator flips red, a downtrend could push the cryptocurrency back to $7,300.

Related Reading: Stephen Colbert Pokes Fun at Bitcoin in Monologue: Mainstream Gone Wrong?

Can Bulls Step In?

But again, many believe it is irrational to have such bearish interpretations of the cryptocurrency’s chart at the moment. As reported by NewsBTC earlier, Popular crypto trader Mayne recently noted that the “people waiting for $6,000” are irrational. He quipped that Bitcoin retracing and consolidating after its fourth-biggest bull move in history ($7,300 to $10,500, a 42% gain) is perfectly par for the course, but noted that it’s totally possible we can go lower from $8,800.

The medium-term technicals support this.

Trader and CoinTelegraph contributor FilbFilb found that by the end of November or start of December, the 50-week and 100-week moving averages will see a “golden cross,” which he claims is far more significant” for the Bitcoin market that other technical crosses.

Also, a Bitcoin price model created using Facebook Prophet machine learning found that the leading cryptocurrency is likely to end the year at just over $12,000. What’s notable about this model is that it called the price drop to $8,000 months in advance, and forecasted a ~$7,500 price bottom for BTC.

To put a cherry on the cryptocurrency cake, Crypto Thies observed that when Bitcoin bottomed at $7,300, it bounced decisively off the 0.618 Fibonacci Retracement of the move from $3,000 to $14,000, which correlates with the two-week volume-weighted moving average. He added that summer 2019’s consolidation was marked by Bitcoin flipping major resistances into support levels, implying that a bullish reversal and subsequent continuation is likely possible in the coming weeks.

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Nick Chong , 2019-11-10 12:00:38

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