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CoinShares and 3iQ partner for bitcoin ETF

ETF blocksTwo of the largest players in the digital asset space are combining forces to launch a bitcoin ETF.

Jersey-based CoinShares has partnered with Canadian firm 3iQ on the issuance of the 3iQ CoinShares Bitcoin ETF. The fund will be listed on the Toronto Stock Exchange with 3iQ acting as the fund manager.

CoinShares has also launched the CoinShares Physical Litecoin for the European market. It is CoinShares’ third physically-backed exchange-traded product so far this year and will be initially listed on the regulated SIX Swiss Exchange.

“With inflows into digital asset investment funds exceeding US$6 billion (€5 billion) in the first quarter of 2021, and global [assets under management] reaching a new record of €46.25 billion, our team at CoinShares believes digital assets will continue to grow as more investors look for cost-efficient vehicles to access this exciting new asset class,” said Jean Marie Mognetti, CoinShares CEO of the 3iQ deal.

For CoinShares, one of Europe’s largest digital asset managers with more than €3.6 billion of assets under management, the arrangement with 3iQ will raise its profile in the North American market where interest in crypto ETFs is rising.

Regulators in the US are yet to approve cryptocurrency ETFs, unlike Canada which has become the financial centre for these products in North America since it allowed trading in February.

However activity among digital asset managers is intensifying in anticipation of a rule change from US regulators.

Grayscale, which currently runs the largest regulated bitcoin fund in the US, recently stated that it is “100% committed” to converting the €32.8 billion Grayscale Bitcoin Trust into an ETF once the structure is approved.

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